India-EU Free Trade Agreement Nears Completion

Sarah J · 2025-11-03T10:14:01.000Z

India and the European Union are in the final and most challenging phase of negotiating their Free Trade Agreement (FTA), with hopes of concluding talks by the end of 2025. While over half the chapters have been wrapped up, outstanding sensitive areas include steel, automotive goods, and emerging EU regulations such as the Carbon Border Adjustment Mechanism (CBAM). Both sides are intensifying discussions, including extended technical rounds and visits, to tackle issues like rules of origin, tariffs, and non-tariff barriers. India is pushing for more access for labour-intensive exports like textiles and engineering, while the EU seeks tariff cuts for automobiles and premium products. A comprehensive FTA is projected to boost bilateral trade, which already exceeds $137 billion, increase foreign investment, and support innovation and supply chain diversification. Resolving the last-mile issues will open greater opportunities and solidify a strategic partnership between two of the world’s largest economic regions.

Member Login Get Access

India-EU Free Trade Agreement Nears Completion | SEINET