India-EU FTA talks near conclusion, pact likely at January 27 summit
Commerce and Industry Minister Piyush Goyal said India and the EU are committed to a mutually beneficial and ambitious FTA for the prosperity of businesses and people on both sides. “I am pleased to acknowledge that the constant and constructive interaction between us and our teams over the past year has brought us closer to a productive outcome,” Goyal said in a post on microblogging platform X responding to EU trade commissioner Maros Sefcovic. he said. “The European Union remains a vital economic and strategic partner for India,” the minister said. India and the EU are set to announce the conclusion of negotiations and an FTA on January 27, aimed at strengthening economic ties between the two regions amid disruptions to global trade due to US tariffs. The outcome of the negotiations regarding the agreement will be announced at the India-EU summit.
Sefcovic, who visited India along with other officials, said this would be his tenth face-to-face meeting with Goyal.
“I can safely say that we are nearing the conclusion of our FTA negotiations. The heavy trade buildup over the past year (probably the trade deal I’ve negotiated most frequently) reflects the importance of this,” Sefcovic said in a post on X.
After 18 years, the deal is nearing the finish line.
Goyal described this agreement as the “mother of all agreements” India has signed so far. European Commission President Ursula von der Leyen arrived here on January 24 for a four-day visit. European Council President Antonio Costa and von der Leyen will hold summit talks with Prime Minister Narendra Modi on January 27.
The EU remains India’s largest goods trading partner, with bilateral trade reaching around $136 billion in 2024-25. Although the two sides will announce the closure of FTA negotiations this week, the agreement will be signed after legal review of the text on a mutually agreed date. Implementation of the agreement may take some time as it requires approval from the EU Parliament. In India, only the Union Cabinet’s permission is required.
India’s achievements
Think tank Global Trade Research Initiative (GTRI) said the agreement would likely reduce costs and expand trade rather than threatening domestic industry, adding that the India-EU economic relationship stands out for its clarity of purpose. “The two are not competitors, but partners operating at different levels of the value chain,” GTRI said.
While India exports labour-intensive, production-oriented and processing-based goods to the bloc, the EU provides capital goods, high-tech and industrial inputs. “This structural complementarity explains why the India-EU free trade agreement will reduce costs and expand trade rather than threatening domestic industry,” GTRI founder Ajay Srivastava said. he said.
