Commerce and Industry Minister Piyush Goyal is scheduled to hold high-level discussions with European Union Commissioner for Trade and Economic Security Maros Šefčovič in Brussels over two days later this week, as both sides seek to narrow differences and expedite the conclusion of the proposed India–EU free trade agreement (FTA).
The ministerial meetings, to be held on 8th and 9th January, will build on preparatory discussions conducted earlier this week between Commerce Secretary Rajesh Agrawal and Sabine Weyand, Director-General for Trade at the European Commission. Officials said the engagements were aimed at ensuring greater clarity on unresolved matters across key chapters of the agreement.
During the Brussels talks, the two sides are expected to undertake detailed deliberations on critical elements of the proposed FTA. India and the EU have both expressed strong political commitment to concluding a comprehensive agreement that supports a rules-based trading system and fosters a modern economic partnership. The deal is expected to safeguard the interests of farmers and micro, small and medium enterprises, while facilitating deeper integration of Indian industry into global supply chains.
The European Union is India’s second-largest export destination for apparel, accounting for nearly 27% of India’s garment exports, valued at more than US $ 7.5 billion annually. Indian apparel exports to the EU currently attract import duties ranging from 8% to 12%, placing domestic exporters at a disadvantage compared with competitors such as Bangladesh, Vietnam and Turkey, which benefit from preferential trade arrangements.
Goyal’s visit comes a month after Commissioner Šefčovič and other senior EU trade officials travelled to India to advance negotiations. The two leaders held extensive discussions in December aimed at pushing the agreement closer to finalisation.
Although both sides had initially targeted the end of December for wrapping up negotiations, officials now indicate that the agreement is likely to be concluded by the first quarter of the 2026 calendar year.
India and the EU resumed negotiations on the FTA in July 2022 and have since completed 14 rounds of talks. The proposed agreement covers 23 policy areas, including trade in goods and services, investment, rules of origin, customs and trade facilitation, government procurement, competition, dispute settlement, intellectual property rights, geographical indications and sustainable development. Officials said the majority of these chapters have already been concluded.
India has also raised concerns over the EU’s proposed Carbon Border Adjustment Mechanism, which is expected to impose additional costs on Indian exports of steel and aluminium. New Delhi has argued that the measure could place Indian exporters at a significant competitive disadvantage.
In parallel with the main FTA, negotiations are also under way on separate agreements covering geographical indications and investment protection.
