What are the main obstacles in the India-EU free trade agreement talks?

Key obstacles include India's concerns over the EU's carbon tax and steel import quotas, and the EU's demands for greater market access in automobiles and dairy.

When is the expected conclusion date for the India-EU FTA?

Both sides aim for a substantial conclusion before the European leaders' visit to Delhi on January 26, 2026, though an exact date is not yet confirmed.

What is the current volume of trade between India and the EU?

In 2024-25, bilateral trade between India and the EU reached $136.53 billion, with India holding a trade surplus.

Home / Business and Economy / Brussels Talks: India-EU FTA Progress Amidst Hurdles

Brussels Talks: India-EU FTA Progress Amidst Hurdles

10 Jan

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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.

Brussels Talks: India-EU FTA Progress Amidst Hurdles

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.