In a significant step toward deepening economic ties, Shri Piyush Goyal, India’s Minister of Commerce & Industry, and Mr. Maroš Šefčovič, European Commissioner for Trade and Economic Security, held a forward-looking dialogue to advance the India-European Union Free Trade Agreement (FTA). Both leaders reaffirmed their commitment to concluding the FTA by the end of 2025, building on the strategic direction set by Prime Minister Shri Narendra Modi and European Commission President Ms. Ursula von der Leyen during the EU College of Commissioners’ visit to New Delhi in February 2025.
A Strategic and Balanced Partnership
The discussions underscored the shared goal of forging a commercially meaningful, mutually beneficial, and fair trade partnership that promotes economic resilience and inclusive growth. The FTA aims to address global trade challenges while supporting digital transition, resilient supply chains, and innovation. Both sides highlighted progress across multiple negotiating tracks and emphasized the importance of maintaining momentum through monthly negotiating rounds and virtual engagements, with the next round scheduled for 12-16 May 2025 in New Delhi.
“The India-EU FTA will be a transformative pillar of our strategic partnership, enhancing market access and fostering innovation.”
Key Focus Areas
India stressed the need for balanced negotiations, advocating equal attention to non-tariff barriers (NTBs) alongside tariffs. Regulatory frameworks, India argued, should be inclusive, proportionate, and trade-friendly to ensure a level playing field. The FTA is designed to reflect the evolving realities of global commerce, with objectives including:
- Enhancing market access for goods and services.
- Promoting regulatory cooperation to reduce trade barriers.
- Supporting diversified production networks and resilient supply chains.
- Fostering innovation and competitiveness in both economies.
- Facilitating investment flows and people-to-people mobility to drive economic vitality.
India’s Vision as a Global Partner
Aligning with India’s emergence as a “Vishwa Mitra” (friend to the world) and its 2047 development goals, the India-EU FTA is seen as a tool to promote fair trade principles and diversified production networks. As India expands its global trade footprint through multiple FTAs, this agreement reflects its broader vision of creating a future-ready trade framework that aligns with national priorities and global aspirations.
Both sides expressed optimism about the transformative potential of the FTA, which is expected to strengthen the India-EU strategic partnership. By addressing pending issues with mutual respect and pragmatism, India and the EU aim to deliver an agreement that supports sustainable economic growth and global trade resilience.
Looking Ahead
The ongoing negotiations, backed by high-level political commitment, signal a new chapter in India-EU relations. The FTA, once concluded, is poised to unlock significant economic opportunities, enhance bilateral trade (valued at US$131.6 billion in FY 2024–25), and position both partners as leaders in the global trade landscape.
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