India-EU FTA Talks Move to Political Level as Minister Piyush Goyal Prepares Brussels Visit

The long-awaited India-European Union Free Trade Agreement (FTA) has entered a decisive phase, with negotiations now advancing to the political level. Commerce and Industry Minister Piyush Goyal is scheduled to visit Brussels later this month to meet EU Executive Vice President and Trade Commissioner Maroš Šefčovič, a move that marks a major step toward resolving the remaining differences in one of India’s most significant trade negotiations.

Talks Elevated to Political Level

After the 14th round of India-EU FTA talks held in Brussels from October 6–10, both sides agreed to elevate discussions beyond the technical track and introduce a continuous engagement model. According to official sources the decision to move to the political level was taken to inject fresh momentum into the negotiations, which have been ongoing since their relaunch in 2022.

The European Commission confirmed that the shift reflects a shared recognition that concluding the FTA requires direct political involvement. This move effectively replaces the earlier “round-based” format with a system of ongoing dialogue among chief negotiators and ministerial-level consultations.

Minister Goyal’s upcoming visit to Brussels follows his participation at the Berlin Global Dialogue from October 23–25 and is expected to provide the needed political impetus to narrow remaining gaps.

Scope and Progress of the Agreement

The proposed FTA is among the most comprehensive trade negotiations either side has undertaken, covering 23 policy areas such as Trade in Goods, Services, Investment, Rules of Origin, Customs Cooperation, Government Procurement, Intellectual Property Rights, and Trade and Sustainable Development.

During the latest round, “constructive discussions” were held on Trade in Goods and market access offers, though no major breakthroughs were reported. The EU is seeking deeper tariff cuts in sectors like automobiles, spirits, and processed foods, while India is pressing for greater access for its labour-intensive exports, such as textiles, leather, and engineering goods.

Significant progress has been made in the Services and Technical Barriers to Trade chapters. The Sanitary and Phytosanitary (SPS) measures chapter has been concluded “in principle.” However, areas like Sustainable Development and Investment remain under negotiation, particularly around environmental standards and investment protections.

Rules of Origin, defining the share of domestic value addition for tariff benefits, also continues to be a key discussion point, with Indian officials staying back in Brussels after the round to advance talks.

Challenges and Sensitive Issues

The EU’s Carbon Border Adjustment Mechanism (CBAM), set to take effect in 2026, has emerged as a sensitive issue for India, as it could affect exports of steel, aluminium, and cement. India has conveyed its concerns over the potential impact on its competitiveness and sought flexibility within the FTA framework.

Other contentious points include the EU’s demand for liberalisation in sensitive goods and India’s emphasis on protecting domestic manufacturing interests while ensuring balanced gains.

Strategic and Economic Significance

The India-EU FTA carries substantial strategic importance. The EU is India’s second-largest trading partner, with bilateral trade in goods reaching around US$136 billion in 2024-25. India’s exports to the bloc stood at US$75.85 billion, while imports totalled US$60.68 billion.

By advancing talks to the political level, both partners are signalling a clear intent to conclude the pact at the earliest possible stage. The agreement is expected to boost market access, attract investment, and strengthen regulatory cooperation between the two major economies.

The procedural shift also indicates recognition that technical discussions alone may not be sufficient to bridge policy gaps. Political guidance at this stage is seen as crucial to resolve outstanding issues and shape the final contours of the agreement.

A Pivotal Moment in India-EU Relations

Minister Goyal’s Brussels visit represents a defining moment for the India-EU trade partnership. It not only reflects renewed determination to conclude a balanced and comprehensive FTA but also highlights the strategic alignment between two major democratic economies seeking to enhance supply chain resilience, sustainable trade, and shared growth.

As both sides intensify their efforts through high-level engagement, the next few weeks could determine whether India and the European Union can achieve what has been more than a decade in the making, a landmark trade agreement reflecting mutual trust and long-term partnership.