India has expressed strong optimism about finalising its long-pending Free Trade Agreement (FTA) with the European Union within this year. The Ministry of External Affairs (MEA) stated that negotiations are making steady progress, with clear directions from both sides to conclude the deal soon.
Speaking on Friday, Tanmaya Lal, Secretary (West) at the MEA, said that during the recent visit of the College of Commissioners to India, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen instructed their teams to push forward and finalise the FTA within 2025.
“That has been a very clear direction. The negotiations are currently underway. Both teams are moving forward strongly, and we are very hopeful that the FTA will be concluded soon,” Lal said.
The high-level visit took place in February, during which both sides reaffirmed their commitment not only to conclude the free trade deal but also to deepen cooperation in areas such as technology and defence. The visit was seen as a significant moment in the growing relationship between India and the EU.
The proposed FTA, if finalised, would be one of the largest trade deals of its kind globally. Negotiations for the agreement originally began over 17 years ago but were suspended in 2013 due to disagreements over key issues.
Talks were relaunched in June 2022, and since then, both parties have been working towards a comprehensive pact that addresses goods, services, investment, and sustainable development.
The renewed urgency to finalise the deal comes amid shifting global trade dynamics, including protectionist threats. The visit by the EU delegation came shortly after former US President Donald Trump warned the EU of possible 25 per cent tariffs, adding to the geopolitical importance of India-EU ties.
Officials from both India and the EU have highlighted that a successful FTA would significantly boost trade volumes and create new opportunities for businesses on both sides. The deal is also expected to enhance regulatory alignment, ease market access, and increase mutual investments.
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