As India and the European Union (EU) look at concluding the proposed free trade agreement (FTA) talks for an early harvest trade agreement by July, India’s commerce and industry minister, Piyush Goyal, travelled to Brussels from Washington on May 23 to meet European commissioner for trade and economic security, Maros Sefcovic, for the second time in a month.
India’s chief negotiator L Satya Srinivas and his team are already at the EU headquarters for the FTA negotiations that are currently underway.
The early harvest or an interim trade agreement would lead to a full-fledged free trade agreement and could include issues like intellectual property rights (IPRs), government procurement, tariffs, and non-tariff barriers.
Officials of both sides recently concluded the eleventh round of talks on May 16 here in the national capital, having agreed to settle the agreement in two phases on account of the uncertain global trade environment, particularly due to the tariffs announced by US President Donald Trump on various countries ever since his second term as US President began early this year.
India has followed the practice of negotiating trade pacts in two phases with Australia.
“Delighted to welcome my friend and counterpart @PiyushGoyal. We continue to make progress. Let’s maintain the momentum – with hard work, clear focus – and I look forward to our next meeting soon,” Sefcovic said in a post on X.
In response, Goyal shared on the social media platform: “We remain committed to the shared prosperity of India and the EU. Let us keep this pace going!”
The India-EU trade pact negotiations cover 23 policy areas or chapters, including Trade in Goods, Trade in Services, Investment, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Remedies, Rules of Origin, Customs and Trade Facilitation, Competition, Trade Defence, Government Procurement, Dispute Settlement, Intellectual Property Rights, Geographical Indications, and Sustainable Development.
Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in products like wines, spirits, meat, poultry and a strong intellectual property regime.
Indian goods exported to the EU – such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery – can become more competitive if the pact is concluded successfully.
India’s bilateral trade in goods with the EU was USD 137.41 billion in 2023-24 (exports worth USD 75.92 billion and imports worth USD 61.48 billion), making it the largest trading partner for goods.
In addition, the bilateral trade in services, in 2023, between India and the EU was estimated at USD 51.45 billion.
The EU market accounts for about 17 per cent of India’s total exports, while the EU’s exports to India make up 9 per cent of its total overseas shipments.
In June 2022, India and the 27-nation EU bloc resumed negotiations for a comprehensive free trade agreement, an investment protection agreement and a pact on geographical indications (GIs) after a gap of over eight years. Negotiations had stalled in 2013 due to differences over the level of opening up of the markets.
On February 28, 2025, Prime Minister Narendra Modi and the European Commission President agreed to seal a much-awaited free trade deal by the end of this year.
Follow us
