EU–India Free Trade Agreement: Brussels Moves Towards Final Deal After Years of Stalled Negotiations

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Brussels and New Delhi are nearing the conclusion of a long-delayed Free Trade Agreement (FTA), which, if finalised, would represent one of the European Union’s most significant trade accords to date.

Following a renewed diplomatic push, EU Trade Commissioner Maroš Šefčovič and Indian Commerce Minister Piyush Goyal have overseen intensified negotiations over recent months, raising expectations that a deal could be reached by the end of 2025.

Renewed Strategic Focus

Negotiations for an EU–India FTA were originally launched in 2007 but were suspended in 2013 due to deep-seated differences on tariff reductions, regulatory alignment, intellectual property, and market access. However, the shifting geopolitical environment – including concerns over China’s economic rise, Russia’s war against Ukraine, and disruptions to global supply chains – has reoriented Brussels’ strategic outlook towards forging closer ties with like-minded partners in the Indo-Pacific.

Against this backdrop, the European Commission reinitiated formal negotiations in 2022. By mid-2025, at least eleven negotiating rounds had taken place. According to a statement made by Šefčovič in May, the EU remains committed to concluding the agreement “by or before the end of 2025”, noting that the two sides share “a strong alignment on core economic and sustainability priorities”.

India is the EU’s ninth largest trading partner, while the EU is India’s largest. Bilateral trade in goods reached €124 billion in 2023, and trade in services amounted to nearly €60 billion. Brussels views the agreement as essential to strengthening the EU’s presence in the region and to ensuring diversified, rules-based economic partnerships.

Scope and Structure of the Agreement

The prospective FTA is envisaged as a comprehensive agreement, encompassing goods, services, investment protection, digital trade, government procurement, geographical indications, and regulatory cooperation. It will also include a stand-alone chapter on trade and sustainable development, aligned with the EU’s broader Green Deal priorities.

An investment protection agreement and a dedicated accord on geographical indications are expected to be concluded in parallel or immediately following the core FTA. According to EU sources, around eight of the agreement’s twenty or so chapters have already been settled. These include intellectual property rights, rules of origin, customs facilitation, and certain sanitary and phytosanitary standards.

However, a number of complex issues remain under discussion. These include EU market access for Indian services, the mutual recognition of professional qualifications, procurement transparency, and India’s access to the EU’s single market for sensitive sectors such as automobiles, dairy products, and alcoholic beverages. The Carbon Border Adjustment Mechanism (CBAM) has also emerged as a point of concern for Indian negotiators, who argue that it imposes a trade burden on developing economies.

From Brussels’ perspective, achieving regulatory convergence, meaningful commitments on sustainability, and transparent dispute settlement procedures are non-negotiable. EU officials maintain that lessons from recent trade pacts with Australia, Chile, and Vietnam are being applied to ensure a balanced, enforceable framework.

Diplomatic Engagement and Timetable

The past two months have seen a marked increase in high-level EU–India contacts. Commissioner Šefčovič and Minister Goyal have met three times in just over a month. The eleventh round of negotiations concluded in May with what both sides described as “substantial progress”, and a twelfth round is provisionally scheduled for early July.

Mr Goyal stated on 10 June that the parties are “really very near” to a final agreement. He described the negotiations as having “mutual respect for each other’s sensitivities”, adding that India is adopting a similar approach as it did in concluding recent bilateral pacts with the UK and EFTA countries.

In February 2025, EU officials noted that the accelerated pace and seriousness of negotiations signalled genuine momentum, while cautioning that some of the most complex issues—such as market access and sustainability standards—remained unresolved at that time. Since then, both sides have continued to engage intensively, and negotiators have reported progress on several of these points. Nevertheless, the EU maintains that further advancement will require India to demonstrate greater openness on market access and increased alignment with EU regulatory frameworks.

Strategic and Economic Implications

A successfully concluded EU–India FTA would offer the EU improved access to one of the world’s fastest-growing economies and a large consumer market of over 1.4 billion people. It would also support Brussels’ aim of reducing dependence on single suppliers and establishing more resilient trade corridors.

Moreover, the agreement would enhance the EU’s presence in the Indo-Pacific and reinforce its economic weight in the Global South. It would stand as a counterweight to China’s Belt and Road Initiative and complement the EU’s Global Gateway strategy.

In trade terms, the European Commission estimates that the deal could generate additional real income gains of  €4–5 billion for the EU, and potentially higher figures over the long term if barriers to services trade are addressed effectively.

With diplomatic efforts intensifying and technical teams working towards closure on key chapters, Brussels remains cautiously optimistic that a comprehensive, mutually beneficial agreement will be finalised in the coming months.

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