India-EU FTA Negotiations Advance
Analysis based on 7 articles · First reported Dec 19, 2025 · Last updated Jan 04, 2026
The ongoing trade negotiations between India and the European Union are crucial for both economies, potentially leading to significant tariff reductions and increased bilateral trade. A successful Free Trade Agreement could boost India's exports in sectors like garments and pharmaceuticals, while the European Union seeks better market access for its automobiles and medical devices. The Carbon tariff (CBAM) remains a key point of contention, with potential tariffs impacting Indian exports to the European Union.
Piyush Goyal, India's Commerce and Industry Minister, is set to visit Brussels on January 8-9 for high-level talks with Maroš Šefčovič, the Executive Vice-President and European Commissioner for Trade of the European Union. This visit marks a critical stage in the ongoing India-European Union Free Trade Agreement (FTA) negotiations, which resumed in June 2022 after an eight-year hiatus. Both sides are intensifying efforts to conclude a comprehensive and mutually beneficial trade agreement, despite the talks entering their 'most difficult' phase, as noted by Rajesh Agrawal, India's Commerce Secretary. Key discussion points include the European Union's demand for significant duty cuts in sectors like automobiles, medical devices, wine, spirits, meat, and poultry, alongside a stronger intellectual property regime. A major contentious issue is the European Union's Carbon tariff (CBAM), which could impose tariffs of 20-35% on Indian exports of steel, aluminum, and cement. India's bilateral trade in goods with the European Union was USD 136.53 billion in 2024-25, making the European Union India's largest trading partner. A successful pact could make Indian exports more competitive in the European Union market.
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