The negotiations for the long-awaited India-European Union Free Trade Agreement (FTA) are moving forward at an accelerated pace. On September 10, 2025, Indian Commerce and Industry Minister Piyush Goyal announced that approximately 60-65% of the chapters in the agreement have already been finalized. This development comes during the 13th round of negotiations currently underway in New Delhi, a round that is considered critical as both sides are aiming to close the talks by the end of 2025. The momentum is further expected to increase with the visit of EU Trade Commissioner Maros Sefcovic and EU Agriculture Commissioner Christophe Hansen to New Delhi on September 12-13, 2025.
Advanced Stage of Talks
According to Minister Goyal, the negotiations have reached an advanced stage with active convergence on a number of key issues. The 13th round, which began on September 8, 2025, is being seen as pivotal in resolving the pending sticking points that stand between India and the European Union. The year-end deadline for the FTA puts additional pressure on both sides to work through sensitive chapters swiftly but effectively.
High-Level Engagement
The upcoming visit of EU Commissioners Sefcovic and Hansen to New Delhi is being considered a decisive step in the process. Their agenda will include high-level meetings with Commerce and Industry Minister Piyush Goyal as well as Agriculture Minister Shivraj Singh Chouhan. The focus will be on sensitive areas such as market access, rules of origin, and customs duties. This high-level engagement follows a preparatory meeting held earlier in Brussels between Commerce Secretary Sunil Barthwal and his EU counterparts, which helped lay the groundwork for more meaningful discussions in New Delhi.
Strategic Context
The urgency to finalize the FTA has been significantly amplified by recent U.S. tariff hikes on Indian goods, which have created challenges for India’s exporters. With U.S. tariffs on Indian imports reaching as high as 50% under the Trump administration, India is actively diversifying its trade partnerships. In this context, the European Union, India’s largest trading partner with bilateral trade in goods valued at more than $135 billion in FY 2023–24, emerges as a vital partner. If concluded successfully, the agreement is expected to be endorsed at the India-EU Summit scheduled for early 2026.
Key Issues Under Negotiation
India’s stance in the talks remains firm on protecting its agricultural sector. Agricultural and dairy products are excluded from the FTA negotiations due to the livelihood concerns of Indian farmers. Similarly, India is seeking protection for sensitive sectors such as fisheries and small- and medium-sized enterprises (MSMEs), which could be vulnerable to foreign competition.
On the other hand, the European Union is pushing for steep duty reductions on automobiles, alcoholic beverages, wine, spirits, meat, and poultry. Additionally, Brussels is seeking stronger commitments on intellectual property rights. These demands have proven to be among the most contentious issues, and the outcome of ongoing talks will determine the degree of flexibility both sides are willing to show.
Progress on Chapters
Despite the challenges, significant progress has been achieved. Around 60-65% of the chapters in the agreement, including critical areas such as capital movement, have already been finalized. This marks a substantial achievement given that talks had stalled for eight years before resuming in June 2022. The level of convergence so far underscores the seriousness with which both India and the EU are approaching this deal.
Political Backing
Political commitment has also been a driving force in pushing the negotiations forward. A phone call on September 4, 2025, between Indian Prime Minister Narendra Modi, European Council President Antonio Costa, and European Commission President Ursula von der Leyen reaffirmed the shared goal of concluding the agreement by the end of this year. This high-level political endorsement has provided further momentum to the ongoing negotiations.
Broader Implications
The potential FTA carries significant geopolitical and economic implications. Globally, the talks are taking place in an environment of trade uncertainties and shifting alliances. India’s strategy to strengthen trade ties with the EU comes not only in response to U.S. tariff hikes but also amid criticism over India’s continued purchase of Russian oil. Minister Goyal has reiterated India’s stance on maintaining strategic autonomy and building resilient supply chains to reduce dependence on any single partner nation.
Economically, the FTA has the potential to give a strong boost to bilateral trade. India’s vast consumer market of 1.4 billion people combined with the EU’s technological and innovation-driven industries creates a strong foundation for mutual growth. Goyal has emphasized that mutual respect for each other’s sensitivities is crucial for achieving a balanced agreement. Successful FTAs already concluded with Australia and the UAE are being cited as reference points for the India-EU deal.
Strategic Partnership Beyond Trade
Beyond the economic domain, the European Union is preparing a new political and strategic framework for India, which is expected to be unveiled on September 17, 2025, coinciding with Prime Minister Modi’s 75th birthday. This framework will expand the scope of India-EU ties, aligning political, economic, and strategic interests ahead of the 2026 summit.
Challenges and Sensitivities
Despite encouraging progress, several hurdles remain. The EU’s insistence on greater access for automobiles and alcoholic beverages continues to clash with India’s protectionist stance on agriculture and small industries. The challenge for negotiators is to find middle ground without compromising on core domestic sensitivities.
Moreover, the backdrop of global trade tensions, particularly with the United States, adds further complexity to India’s trade negotiations. Yet, India is making clear that it intends to strike a balanced and equitable deal while safeguarding national interests.
Next Steps
The visit of Commissioners Sefcovic and Hansen on September 12-13, 2025, is expected to be a turning point in the talks. With a delegation of 30 negotiators accompanying them, Brussels is signaling the importance it attaches to this deal. Minister Goyal has expressed optimism about substantially concluding the FTA during this phase of negotiations. The immediate goal of both sides is to converge on the remaining chapters and finalize the agreement in time for its endorsement at the 2026 India-EU Summit.
As the 13th round of negotiations continues in New Delhi, the momentum and political will on both sides suggest that the India-EU FTA is closer than ever to becoming a reality. If successful, this agreement will mark a new era in India-EU relations, strengthening economic ties while providing a strong strategic foundation for future cooperation.
