India-EU free trade talks enter final stage, says commerce secretary

The negotiations between India and the European Union on the proposed free trade agreement are progressing "very well" and have reached the last leg, a senior government official said on Wednesday.

The two sides concluded their 14th round of negotiations in Brussels last week, but some Indian officials have stayed back to conclude talks on Rules of Origin (ROO), Commerce Secretary Rajesh Agrawal told reporters here.

"We are in the last leg of negotiations. The last leg is the most arduous leg of negotiations because these are the toughest things that are decided at the end. Progress in the last round has been very positive," he said.

The 'Rules of Origin' (ROO) provision prescribes minimal processing that should happen in the FTA (free trade agreement) country so that the final manufactured product may be called originating goods in that country.

"That (ROO) is one area where a lot of work needs to be done. So we have left the team there. It was planned to have the negotiations for two weeks at a stretch to see that we can make substantial progress," Agrawal said.

He added that the dates for the next round of negotiations have not been finalised yet, but discussions are on as there are some issues for which both sides need to be engaged on a continuous basis.

"Instead of waiting for a round, there are engagements that are going between the two sides virtually also," he said adding "negotiations are progressing very well. Chances are that it may get closed by December".

As talks intensify, some officials from the EU are expected to visit New Delhi next month to carry forward the discussions.

Agrawal joined the discussions as the 14th round was winding down. He met Director General (Trade) of the European Commission (EC) Sabine Weyand to assess the progress of talks.

In June 2022, India and the EU bloc resumed negotiations for a comprehensive FTA, an investment protection agreement and a pact on geographical indications after a gap of over eight years. Talks were stalled in 2013 due to differences on the level of market opening.

Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in other products like wine, spirits, meat, poultry, and a strong intellectual property regime.

Indian goods' exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact sails through.

The India-EU trade pact negotiations cover 23 policy areas or chapters, including trade in goods, trade in services, investment, sanitary and phytosanitary measures, technical barriers to trade, trade remedies, rules of origin, customs and trade facilitation, competition, trade defence, government procurement, dispute settlement, intellectual property rights, geographical indications, and sustainable development.

India's bilateral trade in goods with the EU was $ 136.53 billion in 2024-25 (exports worth $ 75.85 billion and imports worth $ 60.68 billion), making it the largest trading partner for goods.

The EU market accounts for about 17 per cent of India's total exports, and the bloc's exports to India constitute 9 per cent of its total overseas shipments.

In addition, the bilateral trade in services between India and the EU was estimated at $ 51.45 billion in 2023.