In a promising step toward strengthening global trade ties, India and the European Union have reached consensus on nearly half of the chapters under negotiation for a comprehensive free trade agreement. This progress signals renewed optimism that the two economic powerhouses may finalize the deal by the end of the year.
Negotiators have already agreed on 8 out of around 20 key chapters, including vital trade areas such as customs, rules of origin, and intellectual property rights. These developments reflect both sides’ dedication to building a mutually beneficial and modern trade partnership.
The talks gained momentum following a February commitment between Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen to prioritize the trade deal in 2025. Continued discussions between Indian Commerce Minister Piyush Goyal and EU Trade Commissioner Maroš Šefčovič in Paris further demonstrate strong diplomatic and economic engagement.
To respect domestic sensitivities and protect key industries, both parties have agreed to exclude certain agricultural products—such as dairy and rice—from the current framework. This careful balance ensures the agreement promotes trade growth while safeguarding national interests.
India’s vibrant dairy industry, the largest in the world, remains a priority for protection. At the same time, ongoing conversations around automobile imports, spirits, and environmental mechanisms like the EU’s Carbon Border Adjustment Mechanism (CBAM) showcase the complexity and depth of this trade dialogue.
With the 12th round of talks scheduled for July, both India and the EU continue to work toward an inclusive and strategic agreement that could enhance market access, reduce trade barriers, and set the stage for a robust transcontinental economic alliance.
This positive trajectory reflects a shared vision for greater global integration and resilient supply chains in an evolving trade landscape.
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