Piyush Goyal: India and EU Reaffirm Shared Commitment to FTA

135
12 Sep 2025
min read

News Synopsis

India and the European Union (EU) have once again emphasized their commitment to concluding the long-awaited Free Trade Agreement (FTA) at the earliest possible date. The agreement, under discussion for several years, is expected to strengthen trade, investment, and strategic economic cooperation between the two partners.

India and EU Strengthen Trade Ties

Piyush Goyal Hosts EU Delegation

Union Commerce and Industry Minister Piyush Goyal announced the progress of talks in a post on X, stating:
“Delighted to host my friend Maros Sefcovic, EU Commissioner for Trade and Economic Security, and Christophe Hansen, Commissioner for Agriculture and Food, along with the EU delegation for dinner. As the India-EU FTA negotiations continue, we reiterated our shared commitment towards its early conclusion. A balanced and mutually beneficial FTA will unlock new opportunities for people and businesses on both sides.”

The visit by European Trade Commissioner Maros Sefcovic and Agriculture and Food Commissioner Christophe Hansen comes at a crucial stage, as both sides aim to accelerate discussions and finalize the framework for a comprehensive deal.

EU’s Perspective

The EU Embassy in India highlighted the significance of this engagement, noting that the delegation’s trip is meant to “take stock and power up India-EU business ties” while also facilitating dialogue with Indian stakeholders in critical sectors.

The Broader Context of India’s Trade Strategy

Tackling Non-Tariff Barriers

India has underlined that progress on the FTA will depend not only on tariff reductions but also on addressing non-tariff barriers (NTBs) such as regulatory restrictions, standards compliance, and customs procedures. New frameworks must ensure inclusivity, fair competition, and ease of doing business across industries.

Recent Trade Agreements by India

The FTA with the EU is part of India’s broader trade diversification and global integration strategy. In the past four years, India has successfully concluded multiple landmark trade deals, including:

  • India-Mauritius CECPA (2021)

  • India-UAE CEPA (2022)

  • India-Australia ECTA (2022)

  • India-EFTA TEPA (2024)

  • India-UK CETA (July 2025) – expected to be operational soon.

Ongoing Negotiations

Beyond these finalized pacts, India is actively pursuing discussions with several other nations and economic blocs. Key negotiations include:

  • India-Australia CECA

  • India-Sri Lanka Economic and Technology Cooperation Agreement

  • India-Peru FTA

  • India-Chile CEPA

  • India-New Zealand FTA

  • India-US Bilateral Trade Agreement

Why the India-EU FTA Matters

Boosting Bilateral Trade

The India-EU FTA is considered a high-priority pact as the EU is one of India’s largest trading partners. In FY 2023-24, India-EU bilateral trade in goods stood at over $130 billion, making the EU India’s third-largest trading partner after the U.S. and China.

Unlocking Opportunities

The deal aims to expand opportunities for businesses in sectors such as:

  • Agriculture and food products

  • Pharmaceuticals and healthcare

  • Digital services and IT

  • Manufacturing and renewable energy

Conclusion

The reaffirmation of commitment by India and the EU to conclude the FTA negotiations at the earliest reflects growing synergy between the two economies. For India, the agreement is expected to enhance market access in Europe, attract foreign investment, and boost exports in high-growth sectors. For the EU, the pact opens doors to one of the world’s fastest-growing consumer markets.

While tariff reductions remain central, addressing non-tariff barriers and ensuring a balanced approach will be critical to achieving a mutually beneficial outcome. If finalized, the India-EU FTA will join India’s expanding portfolio of international trade agreements and further strengthen its position in the global economy.

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