What happened?
India’s Minister of Commerce & Industry, Piyush Goyal, and European Commissioner for Trade and Economic Security, Maroš Šefčovič, reaffirmed their shared resolve to conclude the India-European Union Free Trade Agreement (FTA) by the end of 2025. This follows strategic direction given by Prime Minister Narendra Modi and President of the European Commission Ursula von der Leyen during a visit by the EU College of Commissioners to New Delhi in February 2025. Progress has been made across negotiating tracks, with momentum to be maintained through monthly rounds; the next is scheduled for 12-16 May 2025 in New Delhi. India emphasised the need for equal focus on non-tariff barriers (NTBs) alongside tariff discussions.
Why it matters to India
This high-level commitment underscores the strategic importance India places on building a commercially meaningful, mutually beneficial, balanced, and fair trade partnership with the EU to support its economic resilience and inclusive growth. The FTA is expected to be a transformative pillar of the India-EU strategic partnership, enhancing market access, supporting regulatory cooperation, fostering innovation, and boosting competitiveness. It aligns with India’s goals for digital transition, diversified and resilient supply chains, and attracting investment flows. Successfully concluding the FTA supports India’s ambition to be a “Vishwa Mitra” (partner to the world) and its 2047 development goals, furthering its vision of shaping a future-ready trade framework aligned with national priorities. Addressing NTBs is crucial for India to ensure its regulatory frameworks remain inclusive and do not restrict trade.