India, EU Aim to Finalize FTA Deal by End of 2025

In a key diplomatic and economic engagement, Shri , India’s Minister of Commerce & Industry, and Mr. Maroš Šefčovič, European Commissioner for Trade and Economic Security, held a constructive dialogue focused on tackling global trade challenges and expediting the conclusion of the India-European Union Free Trade Agreement (FTA) by the end of 2025.

This high-level interaction builds on the strategic momentum set by Prime Minister Shri Narendra Modi and European Commission President Ms. Ursula von der Leyen during the EU College of Commissioners’ landmark visit to New Delhi in February 2025. Their meeting established a strong foundation for a modern, ambitious, and comprehensive trade partnership between two of the world’s most dynamic economies.

A Strategic Milestone in Bilateral Trade Relations

The recent talks between Minister Goyal and Commissioner Šefčovič underscored the shared resolve of India and the EU to finalize a commercially meaningful, balanced, and fair trade agreement. Both leaders reiterated the importance of building a trade partnership that supports inclusive growth, enhances economic resilience, and aligns with the broader strategic interests of both regions.

With the negotiations entering a decisive phase, both parties acknowledged the substantial progress made across multiple tracks, including goods, services, investment, digital trade, and sustainability. The leaders emphasized the critical need to maintain the momentum through consistent monthly rounds of negotiations and continuous virtual engagements to ensure no time is lost in reaching a comprehensive consensus.

Emphasis on a Balanced Approach to Trade

India highlighted that the success of the FTA relies on giving equal attention to non-tariff barriers (NTBs) alongside tariff reduction discussions. Minister Goyal emphasized the importance of regulatory frameworks being inclusive, proportionate, and not inadvertently restricting trade. Both sides committed to addressing remaining issues pragmatically, with a focus on mutual respect and cooperation.

The next round of negotiations, scheduled from 12–16 May 2025 in New Delhi, is expected to play a crucial role in resolving outstanding issues and pushing the talks closer to a conclusion.

Fostering Future-Ready Trade and Economic Ties

The envisioned India-EU FTA is not just about trade—it aspires to reflect the evolving realities of global commerce. It is designed to support the digital transformation of economies, encourage diversified and resilient supply chains, and reinforce shared commitments to sustainability and innovation.

Both India and the EU expressed confidence that the agreement will significantly enhance market access, promote regulatory cooperation, and foster innovation and competitiveness across industries. Investment flows, intellectual property protection, and people-to-people mobility were highlighted as crucial enablers of long-term economic vitality and prosperity.

A Vision Aligned with India@2047

The India-EU holds special significance as India moves toward its vision of becoming a developed nation by 2047. Rooted in the ethos of “Vishwa Mitra” — India as a partner to the world — the agreement is seen as an instrument to build diversified production networks, uphold fair trade principles, and ensure equitable benefits for all stakeholders.

As India continues to broaden its global trade footprint through a series of comprehensive FTAs with major economies, this dialogue with the EU reflects its commitment to shaping a future-ready trade architecture that aligns national priorities with global aspirations.

Conclusion

The meeting between Shri Piyush Goyal and Mr. Maroš Šefčovič marks a critical step forward in India-EU economic relations. With shared determination and strategic alignment, both sides are on course to conclude one of the most ambitious trade agreements of this decade. As negotiations intensify in the coming months, the India-EU FTA promises to be a transformative pillar of the broader strategic partnership, paving the way for enhanced cooperation, innovation, and sustainable growth.