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Brussels Talks: India-EU FTA Progress Amidst Hurdles
10 Jan
Summary
- India-EU trade negotiations stalled over carbon tax and import quotas.
- Both sides express optimism about good progress and narrowing issues.
- Bilateral trade reached $136.53 billion in 2024-25.
India and the European Union are nearing a breakthrough in their free trade agreement (FTA) negotiations, despite several outstanding issues. Recent "marathon talks" in Brussels between Indian Commerce Minister Piyush Goyal and his EU counterpart, Maroš Šefčovič, yielded "good progress," with both sides expressing optimism.
The primary sticking points remain India's concerns over the EU's carbon tax and steel import quotas, alongside the EU's higher market access aspirations for automobiles and dairy. These issues are a key focus as both nations aim for a substantial conclusion ahead of European leaders' visit to Delhi for Republic Day celebrations on January 26, 2026.
Bilateral trade between India and the EU reached $136.53 billion in 2024-25, with India reporting a trade surplus. The ongoing negotiations aim to establish a balanced and mutually beneficial trade and investment agreement to enhance EU-India relations amidst growing global uncertainties.
