India & EU Aim To Conclude FTA Negotiations By Year-End

(MENAFN- KNN India) New Delhi, Sep 13 (KNN) India and the European Union (EU) are intensifying efforts to finalise their Free Trade Agreement (FTA) by the end of this year, EU Trade Commissioner Maros Sefcovic said Friday, following the conclusion of the 13th round of negotiations.

“We will not agree on everything, but as major democracies in an increasingly uncertain world, there are many areas where we can work together. I am confident we will achieve a very good agreement,” Sefcovic said at the annual session of the Automotive Component Manufacturers' Association (ACMA).

He highlighted the goodwill and constructive approach of negotiators on both sides as key factors in meeting the deadline set in February by European Commission President Ursula von der Leyen and Prime Minister Narendra Modi.

Commerce and Industry Minister Piyush Goyal noted that while no agreement is perfect, a balanced and equitable FTA would create a win-win partnership.

The EU will benefit from India's growth story, while India will gain from the size of the EU economy, its technologies, and innovations, he said. Goyal added that approximately 60–65 percent of the FTA's chapters have been finalised so far.

The India-EU FTA negotiations, re-started in June 2022, cover 23 chapters, including Trade in Goods and Services, Investment, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Rules of Origin, Intellectual Property Rights, Government Procurement, and Sustainable Development.

The FTA holds strategic importance for both sides. The EU is India's largest trading partner, with bilateral merchandise trade valued at USD 136.2 billion in 2024–25, including exports of USD 75.8 billion and imports of USD 60.6 billion. Services trade stood at USD 70 billion in 2023, with India enjoying a surplus of USD 9.25 billion.

India is seeking preferential access for labour-intensive exports such as textiles, apparel, leather, machinery, chemicals, pharma, and metals, along with visa relaxations for temporary workers.

It is also seeking carve-outs from the EU's Carbon Border Adjustment Mechanism (CBAM) for steel and aluminium.

The EU, in turn, is seeking greater market access in India for its auto sector, wines and spirits, and agricultural products such as meat and poultry.

(KNN Bureau)

MENAFN13092025000155011030ID1110057089