India–EU Trade Talks Begin Today: Key Issues on the Table Ahead of December Deadline

Senior officials from India and the European Union (EU) have begun a new round of trade talks in Brussels from October 6, 2025, aiming to finalise a comprehensive free trade agreement (FTA) before the December deadline. 

The discussions seek to bridge differences that have persisted for over a decade, as both sides work towards strengthening economic ties and increasing two-way trade and investment.

Renewed Push for the Long-Pending Trade Pact

The upcoming negotiations mark another significant step since talks resumed in June 2022 after an eight-year pause. The proposed India–EU FTA covers 23 policy areas, including trade in goods and services, investment protection, intellectual property rights, sustainable development, and government procurement. 

Both sides hope that resolving outstanding issues will pave the way for a balanced and mutually beneficial deal. Later this month, India’s commerce minister and the EU’s trade commissioner are expected to meet in South Africa to review the progress of negotiations and assess whether the discussions are on track to meet the December 2025 target.

Trade Ties Between India and the EU

The EU currently stands as India’s largest trading partner for goods. In FY25, bilateral trade between the two regions reached $136.53 billion, with India exporting goods worth $75.85 billion and importing $60.68 billion. 

The EU accounts for about 17 per cent of India’s total exports, while India represents around 9 per cent of the EU’s global exports. Additionally, services trade between the two partners touched $51.45 billion in 2023, highlighting the depth of economic engagement.

Areas of Contention in the Negotiations

Despite consistent progress, several challenges remain. The EU is pressing for major tariff reductions on products such as automobiles, medical devices, wines, and spirits, along with stronger intellectual property protection. 

India, on the other hand, is focused on securing greater market access for sectors such as textiles, pharmaceuticals, steel, petroleum products, and electrical machinery. These exports are expected to gain a competitive edge in the European market if the agreement is successfully concluded.

The talks will also delve into complex aspects like dispute settlement mechanisms, customs facilitation, geographical indications, and technical barriers to trade.

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Conclusion

As the December deadline approaches, the upcoming rounds of discussions will be crucial in determining the fate of the India–EU trade pact. A successful agreement could redefine economic relations between the two regions, enhance investment flows, and create new opportunities for businesses on both sides.

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