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India, EU making good progress on tariff issues; EU delegation to visit India next week
Oct-29-2025

The negotiating teams of India and the European Union (EU) are making good progress on tariff-related issues and an EU delegation will visit India next week to further iron out differences for an early conclusion of the proposed free trade agreement (FTA). Commerce and Industry Minister Piyush Goyal hold discussions with EU Commissioner for Trade and Economic Security Maros Sefcovic and give an impetus to the negotiations. Sefcovic said that European Commission Director General for Trade Sabine Weyand will visit New Delhi next week with a view to concluding the technical tariff negotiations. Sefcovic added that beyond the area of tariffs, both sides have made good progress on measures that will further facilitate bilateral trade and investment between India and the European Union.

Goyal said that the three-day talks have significantly reduced the outstanding issues. In a free trade agreement, two countries or regions either significantly reduce or eliminate tariffs on the maximum number of goods traded between them. They also ease norms to promote trade in services and attract investments. He added that a robust and balanced agreement will support businesses in Europe and in India. Engagements between the two sides have increased as they have decided to conclude negotiations by December. Goyal’s visit follows the conclusion of the 14th round of talks between the two sides from October 6-10.

In June 2022, India and the EU bloc resumed negotiations for a comprehensive FTA, an investment protection agreement and a pact on geographical indications after a gap of over eight years. It was stalled in 2013 due to differences on the level of opening up markets. India’s bilateral trade in goods with the EU was $136.53 billion in 2024-25 (exports worth $75.85 billion and imports worth $60.68 billion), making it the largest trading partner for goods. The EU market accounts for about 17 per cent of India’s total exports, and the bloc’s exports to India constitute 9 per cent of its total overseas shipments.

Besides, demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in other products like wine, spirits, meat, poultry, and a strong intellectual property regime. Indian goods’ exports to the EU, such as readymade garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact sails through. The India-EU trade pact negotiations cover 23 policy areas or chapters, including trade in goods, services, investment, trade remedies, rules of origin, customs and trade facilitation, competition, government procurement, dispute settlement, intellectual property rights, geographical indications, and sustainable development.

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