India-EU Free Trade Agreement Talks Enter Crucial Phase

India and the European Union (EU) are preparing for a decisive round of negotiations on a Free Trade Agreement (FTA), with the 13th round of talks set to begin in New Delhi on September 8, 2025. These discussions come as both sides aim to finalise the deal by the end of this year, amid growing concerns over global trade disruptions triggered by U.S. tariff policies.

Strategic Importance of the Talks

The FTA has gained renewed urgency as tariff wars led by the U.S. are reshaping global trade flows. According to officials, both India and the EU see the deal as a mechanism to “de-risk” supply chains and provide stability for businesses across critical sectors.

To give political momentum to the negotiations, EU trade commissioner Maros Sefcovic and agriculture commissioner Christophe Hansen are expected to visit New Delhi for discussions with commerce minister Piyush Goyal.

Progress Achieved So Far

The two sides have already closed 11 out of 23 chapters of the agreement, including:

  • Intellectual Property

  • Customs & Trade Facilitation

  • Transparency and Regulatory Practices

  • Small and Medium Enterprises (SMEs)

  • Sustainable Food Systems

  • Dispute Settlement

  • Competition and Subsidies

  • Digital Trade (in-principle agreement)

  • Anti-Fraud Clause

Negotiations are also close to being finalised on capital movement.

Key Issues in the Upcoming Rounds

The 13th and 14th rounds of negotiations (the latter scheduled in Brussels on October 8) will focus on more contentious areas, including:

  • Technical Barriers to Trade

  • Sanitary and Phytosanitary Issues

  • Market Access for Goods and Services

  • Rules of Origin

  • Public Procurement

Additionally, both sides exchanged offers on services and investments in July 2025, and efforts are underway to reach a balanced outcome.

India’s Red Lines vs. EU’s Demands

While India has excluded sensitive items such as rice, sugar, and dairy from the negotiations, the EU is pushing for greater market access in automobiles and spirits.

At the same time, the EU has shown openness to supporting aquaculture exports, especially shrimps, which have been impacted by the recent doubling of U.S. tariffs. India exported $2.8 billion worth of shrimps to the U.S. in 2024, making this a vital concern.

High-Level Political Engagements

The trade talks featured prominently in the September 4 phone call between Prime Minister Narendra Modi and EU leaders Antonio Costa and Ursula von der Leyen, who urged for a conclusion of negotiations by year-end.

Looking ahead:

  • On September 17, EU’s foreign and security policy chief Kaja Kallas will unveil a new strategic agenda for relations with India.

  • The European Council is expected to endorse this agenda before the end of 2025 for adoption at the India-EU Summit in early 2026.

Beyond Trade: Strengthening Strategic Ties

Engagements are also broadening beyond trade:

  • A dialogue on counterterrorism cooperation is scheduled in Brussels this week.

  • The EU’s Political and Security Committee will coordinate with India on expanding strategic cooperation.

  • External Affairs Minister S. Jaishankar will attend the Indo-Pacific Forum in Brussels (November 9–10).

  • A ministerial meeting of the India-EU Trade and Technology Council (TTC) is also expected, covering AI, quantum computing, biotech, defence, and security.

Conclusion

The India-EU FTA negotiations have reached a critical juncture, with both sides moving beyond preliminary discussions to address core trade issues. With 11 chapters already closed and strong political will on both sides, the coming weeks will determine whether the ambitious goal of finalising the FTA by year-end can be achieved.

The deal, once concluded, is expected to significantly reshape trade flows, offer Indian businesses access to European markets, and provide the EU with a strong partner in Asia amid global trade uncertainties.


Location: Pune, Maharashtra, India

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