India-EU Review Progress in FTA Negotiations

The Piyush Goyal-led visit to Brussels brought fresh momentum to the bilateral free-trade deal between India and the European Union (EU). Talks with Maroš Šefčovič, Commissioner for Trade and Economic Security, produced “intense but very productive” outcomes, reducing outstanding issues and setting the stage for the next round of technical discussions. Hindustan Times+3mint+3Firstpost+3

Both sides reaffirmed their joint aim to conclude a balanced, mutually beneficial FTA by end-2025, acknowledging political trust, strategic ties and the rising need for transparent regulatory frameworks. PTI News+2eu-india.org+2

1. Brussels Breakthrough: What’s Changed in the India-EU Talks?

The talks have achieved measurable progress: for example, in the recent round, India and the EU agreed to close approximately 10 out of 20 chapters, with a further four or five chapters substantially decided. The Indian Express+2Hindustan Times+2

This means that more than half the agenda is moving towards conclusion – a promising indicator for the deal’s timeline.

2. Tariffs, Rules & Realities: The Key Negotiation Battlegrounds

The core issues revolve around:

• Tariff lines (especially in non-sensitive industrial goods) – where both sides have agreed to focus efforts. The Indian Express+1

• Non-tariff barriers & regulatory frameworks – India has flagged concerns over new EU regulations and demanded preferential treatment for its labour-intensive sectors. alchempro.com+1

• Sensitive sectors such as steel, autos, and the EU’s Carbon Border Adjustment Mechanism (CBAM) – these remain unresolved and require further negotiation. HDFC Sky

In short: the easier chapters are being finalised; the harder ones remain.

3. What India Wants, What the EU Expects – Closing the Gap

India’s demands include: preferential treatment for labour-intensive exports, transparency of regulations, predictable market access. The EU, on its side, has expectations around opening its market for automobiles, alcoholic beverages, industrial goods, and clearer rules of origin. The Indian Express

The challenge lies in balancing:

• India’s desire to protect strategic sectors and jobs

• The EU’s focus on reciprocity and regulatory alignment
  Both sides emphasise a “win-win” outcome rather than one side giving in. Firstpost

4. Next Steps: Why the EU Team Visits India Matters

An EU technical delegation will visit India next week to pick up the pace and narrow remaining gaps in tariff and regulatory matters. The Economic Times+1

Such visits are pivotal because:

• They allow technical experts to latch into the specific tariff lines and regulatory details.

• They signal political will – and raise expectations across business communities.

• They set the tone for the final push toward the target end-2025 conclusion.

5. Why This Deal Is Bigger Than Just Tariffs

This FTA isn’t merely about cutting duties. It’s about forging a strategic partnership:

• Integrating supply chains, technology flows, investment frameworks

• Enhancing regulatory trust and institutional alignment

• Reflecting the broader vision of India-EU cooperation between Narendra Modi and Ursula von der Leyen for shared prosperity. mint+1

For Indian exporters and European firms alike, the upside lies in predictable rules, a stable business climate, and market access.

Conclusion

The India-EU FTA negotiations are at a critical juncture. With significant chapters closed and a clear end-2025 target in sight, both parties are moving steadily—yet carefully—through the complex web of tariffs, regulations and sensitivities. The upcoming EU technical team visit to India represents a pivotal moment: it could determine whether the deal crosses the finish line—or stalls on the final hurdles.

For India, aligning its labour-intensive sectors, ensuring transparency and addressing non-tariff barriers are key. For the EU, securing meaningful market access and regulatory alignment matter most. If handled well, this FTA could reshape trade between India and the EU for decades. The time to watch is now—and business stakeholders should prepare accordingly.