India-EU FTA Talks Progress Despite Steel, Auto Disputes

• India and EU aim to conclude FTA talks by year-end.
• Discussions focus on steel, auto, and IP sectors.
• Trade in goods between India and EU reached $136.53B.

Despite persistent differences in critical areas such as steel and automobiles, negotiations between India and the European Union (EU) on a comprehensive Free Trade Agreement (FTA) are making good strides. The 14th round of talks, which ended in Brussels, concentrated on finding solutions related to trade in goods and services, investment, technical barriers, customs facilitation, intellectual property rights, and sustainable development.

Among other things, the EU is looking for lower tariffs on cars, medical devices, wine and spirits, and meat and poultry, as well as a higher-quality intellectual property regime. Conversely, India desires less restrictive quotas for its exports, such as garments, pharmaceuticals, steel, petroleum, and electrical equipment.

Commerce Secretary Rajesh Agrawal came on board only for the last days of the negotiations to energize the process. He furthered the talks with European Commission Director General for Trade Sabine Weyand during his visit.

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There are 23 policy areas in the FTA talks, with the goal of gaining better market access, simplifying trade rules, and enhancing investor protection on both sides. After more than eight years, in June 2022, India and the EU decided to get back to negotiating the comprehensive trade and investment agreement. The deadlock had been caused by the differences of opinion on the degree of market liberalization in 2013.

Bilateral trade in goods between India and the EU was $136.53 billion in 2024–25, with exports of $75.85 billion and imports of $60.68 billion. About 17% of India's total exports are destined for the EU, while the exports from the EU to India constitute 9% of their global shipments.