India and the European Union are moving swiftly toward finalizing a comprehensive free trade agreement (FTA) by December. This week, senior EU officials, including the Agriculture Commissioner and Trade Chief, are visiting India to advance negotiations.
Key topics still under discussion include product origin rules, tariff reductions—particularly on wine and dairy products—and broader market access for both regions.
Bilateral trade in goods between India and the EU reached approximately US$135 billion in 2023-24, making the EU India’s largest trading partner. The agreement aims not only to reduce trade barriers but also to deepen cooperation in strategic areas such as defense, technology, and institutional engagement.
The EU is expected to unveil its new strategic vision for relations with India on September 17. This initiative will likely play a central role in the upcoming India-EU summit scheduled for early next year.
Over the next few months, several high-level engagements are planned, including meetings between EU envoys and Indian officials, counter-terrorism dialogues in Brussels, and visits by EU parliamentary delegations to New Delhi.
So far, 11 chapters of the FTA have been finalized, covering key areas such as digital trade, capital flows, sustainability, and competition. Remaining negotiations will focus on sensitive sectors and resolving non-tariff barriers.
Both India and the EU leadership have reiterated their commitment to finalizing the agreement swiftly, viewing it as a transformative step toward a more resilient and balanced global trade framework.
