EU-India FTA Negotiations Progress as Commissioner Šefčovič Addresses Automotive Industry Leaders in New Delhi

European Commissioner for Trade and Economic Security Maroš Šefčovič delivered a keynote address at the 65th Annual Session of the Automotive Components Manufactures Association of India in New Delhi on September 12, 2025, outlining the current status of EU-India Free Trade Agreement negotiations and the potential for enhanced cooperation in the automotive sector.

EU Emerges as India's Largest Trading Partner

Speaking at the automotive industry gathering, Šefčovič highlighted the growing economic relationship between the European Union and India. He noted that "in 2024 the EU was India's largest trading partner, ahead of the U.S. and China," with more than 6,000 European companies currently operating in India. The Commissioner cited that bilateral trade in goods reached 140 billion euros in 2023, representing approximately 90% growth over the past decade.

Automotive Sector Central to EU-India Partnership

The Commissioner emphasized the automotive industry's role in strengthening bilateral ties, stating that "the automotive sector which powers our economies should be at the centre of the partnership". He described the potential synergies between Europe's expertise in engineering and green technologies with India's growing market and manufacturing capabilities.

Šefčovič specifically mentioned high-value investments in India's automotive sector, referencing the Volkswagen and Mercedes-Benz plants in Pune as examples of job creation through EU investment. He indicated that such partnerships extend across "the entire ecosystem supplying cars parts, equipment, and software".

FTA Negotiations Target Year-End Completion

The Commissioner confirmed ongoing efforts to finalize the Free Trade Agreement by the end of 2025, as previously agreed between European Commission President von der Leyen and Prime Minister Modi. Šefčovič stated that negotiations are "maximising our efforts to finalise negotiations by the end of the year".

Regarding the automotive sector specifically, Šefčovič expressed his goal to "ensure that the FTA facilitates two-way trade flows between India and the EU under conditions of tariff liberalisation for all components, from engines to brakes". He characterized this as "a win-win scenario for our industries" that would "facilitate the introduction of advanced new technologies into India".

Technological Collaboration and Market Potential

The Commissioner outlined the potential for collaboration in developing next-generation automotive technologies. By combining what he described as "the power of our automotive markets - the world's third and fourth largest," both regions could advance in developing "cutting edge combustion engines as well as electric vehicles with advanced battery technologies, and smart mobility solutions".

Strategic Partnership Beyond Trade

Šefčovič positioned the Free Trade Agreement within a broader strategic partnership framework, noting areas of cooperation including "bringing prosperity and strengthening supply chains," advancing climate goals, developing critical emerging technologies, and working on security and defense matters.

The Commissioner acknowledged that "we will not agree on everything" but emphasized that "as major democracies, in an increasingly uncertain world, there are a lot of areas where we can work together".

Minister Goyal's Participation

The speech was delivered alongside Indian Commerce and Industry Minister Piyush Goyal, with whom Šefčovič noted he has been "working intensively, together with our teams, to make progress on a groundbreaking Free Trade Agreement between the European Union and India". The Commissioner praised Minister Goyal as "a fantastic host" during negotiations in India.

This marked Šefčovič's third visit to India in 2025, reflecting the intensified engagement between the two regions as they work toward finalizing their comprehensive trade agreement.