Ministry of Commerce & Industry Advances India–EU Free Trade Talks Towards 2025 Conclusion
SDG 17: Partnerships for the Goals
Institutions: Ministry of Commerce & Industry | Directorate General of Trade
In a major step toward finalising a comprehensive India–EU Free Trade Agreement (FTA), a high-level delegation from the Ministry of Commerce & Industry (MoCI) held talks with the European Commission’s Directorate-General for Trade in Brussels from 26 – 28 October 2025. Both sides reaffirmed a shared intent to conclude negotiations by end-2025, underscoring strong political alignment following directives from national and EU leadership earlier this year.
Key Outcomes of the Brussels Round
Political Direction: The dialogue built on the February 2025 guidance from top leadership on both sides, signalling continuity of intent and mutual trust.
Commitment to Balance: Both parties reiterated that the FTA must be “balanced, equitable and predictable”, ensuring market access while addressing sensitivities in critical sectors.
India’s Core Concerns:
Non-Tariff Measures (NTMs): India highlighted barriers arising from evolving EU regulatory frameworks, especially those affecting labour-intensive sectors like textiles, leather, and processed food.
CBAM and Standards Compliance: India raised implementation concerns on the EU’s Carbon Border Adjustment Mechanism (CBAM), which could affect Indian steel, aluminium, and cement exports.
Other Sensitive Sectors: Auto components, steel, and services remain priority discussion areas requiring further landing-zone negotiations.
Follow-Up Plan: The EU technical team (led by the Director-General for Trade) will visit New Delhi next week to continue work on narrowing the remaining gaps.
Regulatory Cooperation: Both sides discussed creating a dedicated Regulatory Dialogue Mechanism to address sustainability standards, carbon pricing, and traceability frameworks.
Strategic and Economic Context
India–EU Trade Linkage: The EU is India’s third-largest trading partner, with bilateral trade reaching ~USD 136 billion in 2024–25, and investment stock exceeding USD 100 billion.
FTA Scope: Covers trade in goods and services, investment protection, digital trade, geographical indications (GIs), government procurement, and sustainability chapters.
Historical Context: Negotiations first began in 2007, paused in 2013, and were re-launched in June 2022 after nearly a decade. The current push aims to reconcile India’s developmental interests with EU’s sustainability and digital standards agenda.
The meeting marks an inflection point in India’s trade diplomacy—transitioning from bilateral FTAs to deeper bloc-level partnerships with strategic economies. The India–EU FTA complements domestic frameworks such as Make in India, Digital India, and the National Green Hydrogen Mission, by:
Enhancing India’s access to premium markets for manufacturing and green goods;
Encouraging regulatory upgrading on environmental and digital standards;
Protecting India’s competitiveness amid emerging carbon and sustainability regulations.
It also strengthens India’s negotiating leverage in plurilateral forums such as the G20 and WTO, where sustainable trade rules are being shaped.
Relevant Question for Policy Stakeholders: How can India institutionalise permanent cross-ministerial monitoring mechanisms to anticipate and adapt to new EU-level regulatory shifts (e.g., CBAM, AI Act, product traceability), ensuring that trade agreements reinforce rather than restrict India’s industrial and climate-transition priorities?
Follow the full news here: India–EU Free Trade Talks