India–EU Trade Talks Reach Critical Phase to Finalize Free Trade Deal by December 2025

New Delhi / Brussels – 12 September 2025 – Negotiations for a landmark free trade agreement (FTA) between India and the European Union have entered their most decisive stage, with both sides determined to conclude the deal before December 2025.

Bilateral goods trade already totals about US $137.5 billion for fiscal 2023/24, nearly double the figure from a decade ago. Talks restarted in 2022 after years of deadlock, gaining new urgency as global trade patterns shift and economic competition intensifies.

India’s Commerce and Industry Minister Piyush Goyal says the pact must remain “balanced and mutually beneficial,” while EU Trade Commissioner Maroš Šefčovič underscores Europe’s readiness to cut barriers, encourage investment, and strengthen supply chains.

The negotiations focus on four main hurdles: steep Indian tariffs on European automobiles, medical devices, wines, spirits, and dairy products; India’s demand for easier access for textiles, pharmaceuticals, steel, and petroleum products in EU markets; persistent non-tariff barriers such as environmental and customs standards; and delicate issues in agriculture and dairy, where both sides seek to protect domestic farmers while opening markets.

Analysts note that a successful agreement would reshape trade flows across industries from automotive to pharmaceuticals, lower consumer costs, and enhance supply-chain resilience. With U.S. tariffs rising and global growth slowing, India aims to diversify export destinations, while the EU looks for a reliable partner in the world’s fastest-growing major economy.

Negotiators will continue meeting in New Delhi and Brussels through the autumn. Experts believe that if compromises are reached on agriculture and regulatory standards, an agreement before December 2025 is within reach. Beyond trade, the deal could also strengthen cooperation on technology, climate action, and regional security, bringing India and the EU closer than ever.