India-EU Trade Talks Advance—Are We Nearing a Game-Changing Pact?

Image Source: The Quint

India and the European Union have made significant progress in their Free Trade Agreement (FTA) negotiations, finalizing nearly half of the deal’s chapters. This marks a crucial step toward strengthening economic ties, with both sides aiming to conclude the agreement by the end of 2025.

Key Highlights:

Major Progress: Negotiators have reached consensus on key trade chapters, covering market access, investment facilitation, and regulatory standards.
Tariff Reductions: India seeks lower tariffs on textiles, pharmaceuticals, and agricultural exports, while the EU pushes for reductions on automobiles and alcoholic beverages.
Sustainability & Compliance: Discussions continue on EU’s Carbon Border Adjustment Mechanism (CBAM) and Deforestation Regulation (EUDR), which India views as potential trade barriers.
Strategic Importance: The EU remains India’s third-largest trading partner, accounting for €124 billion in goods trade in 2023.
Finalization Timeline: Both sides aim to wrap up negotiations by late 2025, ensuring a comprehensive and balanced trade pact.

With economic fragmentation and protectionism rising globally, the India-EU FTA is expected to boost trade flows, enhance investment opportunities, and strengthen geopolitical cooperation.

Sources: IMPRI India, Drishti IAS, World Economic Forum