What happened?
On September 8, 2025, India and the European Union opened the 13th round of negotiations for a Free Trade Agreement in New Delhi, marking a crucial step toward finalising the pact by the end of this year. The week-long talks focus on reducing non-tariff barriers and improving market access for goods and services. High-level visits from European Commissioners Maros Sefcovic and Christophe Hansen are also planned to tackle unresolved issues such as tariffs on automobiles, agriculture and dairy, as well as access for Indian pharmaceuticals, textiles and skilled professionals. The negotiations, revived in 2023 after a decade-long pause, have already closed chapters on intellectual property, customs and trade facilitation, and are now centring on rules of origin and digital trade provisions.
Why it matters to India
The European Union is one of India’s largest export markets, accounting for over 15 percent of outbound shipments and a $15-billion trade surplus. A successful FTA would deepen economic ties, secure greater market access for Indian goods and services, support supply chain resilience and protect India’s trade interests amid global uncertainties such as US tariffs and EU climate regulations. Concluding the agreement would cement India’s position in a key global market and give its businesses a more expansive platform for growth.