India-EU FTA: Both sides eye final deal by 2025 end; agreement on steel, auto and other sectors remaining

Union commerce and industry minister Piyush Goyal has concluded a three-day visit to Brussels, where India and the European Union engaged in negotiations to achieve a mutually beneficial, balanced and equitable trade agreement.During the visit that lasted from October 26 to October 28, Goyal held detailed discussions with Maros Sefcovic, European commissioner for trade and economic security, along with senior officials from his office. The two sides aim to finalise the Free Trade Agreement by the end of this year.The talks were described as productive, with both sides reviewing unresolved areas within the negotiations and identifying what they termed “possible landing zones” on pending issues.The push comes months after PM Modi and European Commission President Ms Ursula von der Leyen jointly instructed negotiators, during the College of Commissioners’ visit to New Delhi in February, 2025. According to a press release by the ministry, negotiataions revolved around building a trade agreement that is balanced and equitable, and respects each side’s core sensitivities. India stressed that the FTA must address both tariff and non-tariff barriers and lead to transparent, predictable regulatory norms that support smoother trade in the coming years.

A major part of the discussion was focused towards non-tariff measures and new EU regulations, an area where India has flagged concerns. The minister also reiterated India’s need for preferential treatment in sectors that are labour-intensive and crucial for export-led growth. Both sides agreed to work together to close discussions on non-sensitive industrial tariff lines.However, some sectors like steel, automobiles, the carbon border adjustment mechanism (CBAM) and other EU regulatory frameworks remain unresolved, still needing further negotiations. India stressed that it views the FTA as an opportunity to build a future-oriented partnership based on shared innovation, meaningful market access, and trade that contributes to peace and prosperity.For further discussions, the European Union’s technical delegation led by the director general for trade, will be arriving in the country, next week.