India, EU push for trade agreement by 2025, focus on market access and innovation
New Delhi: India and the European Union have reaffirmed their commitment to concluding an ambitious free trade agreement (FTA) by the end of 2025, aiming to reshape their strategic trade and investment partnership, the commerce ministry said in a statement on Friday.
Commerce Minister Piyush Goyal met the European Commissioner for Trade and Economic Security Maros Sefcovic in Brussels for what officials described as a forward-looking dialogue focused on tackling global trade challenges and accelerating negotiations.
This renewed urgency comes against the backdrop of India’s broader diplomatic push to conclude most of its ongoing trade deals within a 90-day window, triggered by the US President Donald Trumop’s announcement of reciprocal tariff hikes. The pause, which runs through 8 July, has prompted India to expedite talks with key partners, including the UK and the EU, to secure market access before global trade conditions potentially tighten, as Mint reported on 11 April.
The momentum builds on the February visit of the EU College of Commissioners to India, where Prime Minister Narendra Modi and European Commission President Ursula von der Leyen signaled intent to deepen bilateral engagement. Since then, both sides have committed to monthly negotiating rounds and regular virtual discussions. The next round is scheduled to take place in New Delhi from 12 to 16 May.
In a post on social media, Goyal said, “In my highly productive dialogue with EU Commissioner Maros Sefcovic today, we reaffirmed our shared commitment to concluding the India–EU free trade agreement negotiations by the end of 2025. As we advance in our negotiations, our focus is on enhancing market access for businesses, promoting trusted and diversified supply chains, and deepening our partnership to drive the growth of our economies.”
He added that the two sides also discussed innovation, competitiveness, and the importance of investment flows and mobility in shaping a “future-ready” agreement.
While both parties have described the FTA as mutually beneficial, India has emphasized the need to address non-tariff barriers (NTBs) with the same seriousness as tariff reduction.
“Regulatory frameworks must be inclusive and proportionate,” India’s delegation told the EU side, stressing that tangible progress on NTBs is essential to ensuring real market access and fair trade outcomes.
Negotiators have reportedly made progress across several areas, including digital trade and supply chain resilience. The agreement is expected to support India’s ambition to emerge as a hub for diversified production networks, aligned with its 2047 development goals, the ministry noted.
For the EU, deeper trade ties with India represent a strategic opportunity to reduce reliance on specific markets and promote balanced global commerce. The proposed FTA aims to foster regulatory cooperation, spur innovation, and boost industrial competitiveness on both sides. Investment flows and the movement of professionals are seen as critical to achieving this alignment.
At home, officials involved in the process said on condition of anonymity that the agreement has the potential to become one of India’s most comprehensive trade deals to date. If concluded as planned, it would mark a significant turning point in India–EU relations—transforming years of deadlock into shared strategic leverage. But negotiators still face difficult trade-offs, particularly around intellectual property rights, environmental standards, and access for agriculture and services.
The talks are also being shaped by sector-specific demands.
Mint reported on 17 April that both sides have been exploring tariff relief for Indian textile exports—a longstanding priority for New Delhi—while the EU is seeking duty concessions on high-value spirits, especially whiskey.
Currently, India imposes tariffs of up to 150% on alcoholic beverages from the EU, while the EU levies duties of up to 14% on Indian textiles. In contrast, India’s textile rival Bangladesh enjoys zero-duty access to the European market under existing trade preferences.
