India and European Union Advance Towards Free Trade Agreement with Upcoming September Negotiations

The India-European Union Free Trade Agreement (FTA) negotiations continue to progress steadily, with both sides committed to concluding a comprehensive trade deal by the end of 2025. Following successful discussions in the recently concluded 12th round, negotiators are preparing for crucial talks scheduled for September that could mark a turning point in the long-awaited agreement.

Key Outcomes from the 12th Round of Negotiations

The twelfth round of India-EU FTA negotiations took place in Brussels from July 7-11, 2025, focusing on core elements that will form the foundation of the future agreement. The negotiations targeted an economically meaningful market access package covering goods, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, and services and investment.

Significant Achievements in Text-Based Negotiations

Both negotiating teams achieved notable progress by reaching agreements in principle on two critical chapters. The Digital Trade chapter was successfully concluded, representing a major milestone in the technology-focused aspects of the agreement. Additionally, negotiators secured a provisional agreement on the Anti-Fraud clause, pending some technical consultations.

Progress Across Multiple Sectors

Trade in Goods: Detailed discussions continued on both industrial products and the agricultural food sector, with negotiators exploring solutions for pending text issues and advancing market access discussions.

Rules of Origin: Comprehensive coverage included specific product rules across multiple sectors - from agricultural products (HS chapters 1-24) to chemical and petroleum products (HS chapters 27-39), machinery (HS chapters 84-85), and industrial products including railways, aircraft, and medical devices (HS chapters 86-96).

Services and Investment: Negotiators made substantial progress on chapter text, particularly in Domestic Regulation and Financial Services. Both sides conducted preliminary discussions on recently exchanged market access offers.

Dispute Settlement: Very good progress was achieved on rules for State-to-State mediation, strengthening the framework for resolving future trade disagreements.

Confirmed Schedule for September Negotiations

India and the European Union have officially confirmed that the 13th round of FTA negotiations will take place in New Delhi from September 8-12, 2025. This announcement follows the commitment made by both sides to maintain intensive engagement throughout the summer months on almost all negotiating topics.

The upcoming round is particularly significant as negotiators aim to finalize a substantial number of issues at the technical level. Officials have indicated that efforts are being made in every area to identify potential areas of convergence, with any unresolved matters being escalated for political direction.

Strategic Importance and Market Access

The negotiations cover 23 comprehensive chapters including trade in goods and services, investment, intellectual property, and sustainable development. Of these chapters, five were finalized by the 11th round, with significant additional progress made during the 12th round discussions.

The agreement holds particular strategic value given that the European Union stands as one of India's primary export destinations, accounting for over 15 percent of India's total outbound shipments. In the financial year 2024-25, India exported goods worth USD 75.76 billion to the EU, resulting in a trade surplus of USD 15.10 billion.

High-Level Engagement and Future Prospects

Following the September negotiations, EU Trade Commissioner Maros Sefcovic is expected to visit India to meet with Commerce and Industry Minister Piyush Goyal. This high-level engagement demonstrates the political commitment from both sides to advance the agreement towards conclusion.

The FTA negotiations, which originally began in 2007 but were suspended due to market access differences, were resumed in 2023 after a nine-year gap. The renewed momentum reflects both sides' recognition of the strategic importance of strengthening economic ties amid evolving global trade dynamics.

An official highlighted the agreement's broader significance, noting that alongside India's existing FTA with the UK and the upcoming European Free Trade Association agreement (effective October 1), this EU agreement will comprehensively strengthen India's trade ties across Europe.

The September round represents a critical juncture in the negotiation process, with both sides working intensively to bridge remaining differences and move closer to a mutually beneficial agreement that reflects the substantial economic partnership between India and the European Union.