India-EU FTA Gains Momentum: Piyush Goyal’s Brussels Visit Marks Critical Breakthrough

In a key diplomatic and economic development, Union Minister of Commerce and Industry, Shri Piyush Goyal, undertook a significant visit to Brussels from 26–28 October 2025 to advance negotiations on the much-anticipated India-European Union Free Trade Agreement (FTA). The meetings, held with Mr. Maroš Šefčovič, European Commissioner for Trade and Economic Security, and his team, marked a pivotal moment in the journey toward finalizing a landmark trade agreement between the world's largest democratic bloc and one of the fastest-growing economies.

Shared Commitment to Conclude the FTA by End-2025

The Brussels engagement reaffirmed the strong political mandate issued by Prime Minister Narendra Modi and President of the European Commission, Ms. Ursula von der Leyen, during the College of Commissioners' visit to New Delhi in February 2025. Both India and the EU reiterated their unequivocal commitment to conclude the FTA by the end of this year, marking a strategic convergence in bilateral relations.

Minister Goyal described the meetings as "productive and meaningful," with both sides expressing a shared vision of a mutually beneficial, balanced, and equitable trade agreement. The discussions reflected the growing depth of political trust and strategic alignment between the two sides, rooted in democratic values, mutual respect, and a desire for sustainable global economic development.

Core Focus Areas: Tariff Alignment, Labour-Intensive Sectors & NTMs

India pressed its position on several outstanding issues, especially regarding non-tariff measures (NTMs) and new EU regulatory frameworks. Key emphasis was placed on:

• Preferential treatment for labour-intensive sectors, which form the backbone of India's export economy and employment generation

• Simplification and rationalization of NTMs, which often act as hidden trade barriers

• Transparent, fair, and predictable regulatory alignment to enhance market access

The European side acknowledged these concerns, leading to intensive discussions on identifying viable "landing zones" for critical areas of divergence.

One of the major discussion points was the Carbon Border Adjustment Mechanism (CBAM)—a proposed EU measure to tax carbon-intensive imports such as steel and cement—which India has consistently viewed as discriminatory and counterproductive to climate equity. Additional sensitive areas included automobile exports, industrial tariffs, and steel trade, where India urged for calibrated transitions and fair treatment.

Progress on Industrial Tariff Lines, But Sensitive Issues Remain

Progress was made on finalising non-sensitive industrial tariff lines, a positive step forward in untangling complex tariff-related bottlenecks. However, issues related to:

• Steel

• Automobiles

• CBAM

• Regulatory compliance frameworks

…remain unresolved and will be subject to further technical and political discussions in the coming weeks.

Both sides recognized that the FTA must strike a balance between ambition and accommodation—promoting free trade without undermining each side's developmental goals, industrial competitiveness, and social priorities.

Next Steps: Technical Discussions in India

To build on the momentum generated in Brussels, the EU's technical team, led by the Director General for Trade, will visit India next week. The visit is aimed at translating the potential solutions identified during the latest round into actionable outcomes, thus maintaining a high level of engagement in the run-up to the December 2025 deadline.

The next phase will likely involve:

• Fine-tuning regulatory language around sustainability and digital trade

• Bridging gaps in market access

• Ensuring reciprocity in investment protection

• Finalizing rules of origin, dispute resolution, and IPR provisions

A Vision for Peace, Prosperity, and Global Leadership

India views the FTA not merely as a trade instrument but as a strategic economic partnership that can redefine India-EU ties in a multipolar world. Minister Goyal emphasized that a successful FTA will:

• Catalyze trade diversification

• Promote green and digital transitions

• Foster supply chain resilience

• Enhance job creation and innovation-led growth

"India looks forward to working closely with the European Union to transform this vision into reality through shared innovation, balanced, equitable, and meaningful trade, and a collective commitment to peace and prosperity," the Minister concluded.

If successfully concluded, the India-EU FTA could become one of the most significant bilateral trade agreements globally, encompassing over 1.8 billion people and nearly a quarter of the world's GDP.