India and EU Move Closer to Comprehensive Free Trade Agreement
Goyal announces closure of 10 chapters, targets year-end completion.
India and the European Union are advancing decisively toward concluding a comprehensive Free Trade Agreement (FTA), Commerce and Industry Minister Piyush Goyal stated on Wednesday. During a three-day visit to Brussels from October 26-28, 2025, the Indian delegation, led by Goyal, engaged in intensive discussions with EU trade negotiators. The minister informed the media that 10 of the 20 negotiation chapters have been finalized, while four to five additional chapters have achieved broad agreement in principle. This progress positions both parties to achieve substantial closure in forthcoming rounds, with an EU delegation scheduled to visit New Delhi next week and a potential follow-up by Trade Commissioner Maroš Šefčovič in late November or December.
Goyal underscored the mutual commitment to a balanced accord that accommodates sensitivities on both sides. “Convergence is emerging on an increasing number of issues,” he noted, emphasizing that the agreement will be mutually beneficial without compromising core national interests. Key areas of contention, including the EU’s safeguard duties on steel imports, India’s high tariffs on automobiles, and the Carbon Border Adjustment Mechanism (CBAM)—a levy on carbon-intensive goods—remain under active resolution. The minister described developments on CBAM as “progressing in the right direction,” reflecting constructive dialogue aimed at equitable implementation.
The negotiations, spanning over 15 rounds across two decades, have gained renewed momentum following directives from Prime Minister Narendra Modi and European Commission President Ursula von der Leyen during their February 2025 summit in New Delhi. The current trajectory aligns with the objective of concluding the FTA by the end of 2025, although Goyal refrained from imposing a rigid deadline. Concurrently, External Affairs Minister S. Jaishankar met with the European Parliament’s Committee on International Trade in Delhi, reinforcing the diplomatic framework supporting the trade initiative. These engagements signal a holistic approach encompassing investment protection, geographical indications, and enhanced market access.
Also Read: From Silent Spinner To India’s Backbone: Deepti Sharma Seeks Redemption Glory
Goyal highlighted robust interest from European governments and industry leaders in expanding ties with India. “Ministers from Germany and other member states, along with numerous European enterprises, have expressed strong intent to deepen engagement with a resurgent, stable, and aspirational India,” he affirmed. This enthusiasm extends beyond trade volumes—currently exceeding €100 billion annually—to strategic partnerships in technology, sustainability, and supply chain resilience. The FTA is projected to generate significant economic gains, including real income growth of €3–4.4 billion per year for both economies, while fostering diversification amid global trade uncertainties.
Parallel advancements in India-U.S. trade discussions were also noted by Goyal, indicating a broader strategy of multilateral economic engagement. As the EU accelerates agreements with other global partners, the India-EU FTA emerges as a cornerstone of strategic autonomy and sustainable development. With critical chapters nearing closure and high-level visits on the horizon, the agreement stands poised to redefine bilateral relations, enhance geopolitical alignment, and unlock transformative opportunities in an evolving international trade landscape.
Also Read: India-Nepal Seal $1 Billion Deal to Electrify South Asia with Super Power Lines
