The two sides have agreed to conclude the settlement in two phases on account of the unsure world commerce atmosphere, significantly due to the U.S. tariff actions underneath President Donald Trump
India and the European Union (EU) chief negotiators will start the next round of talks on the proposed free commerce settlement (FTA) right here from Monday (May 12, 2025), with an purpose to conclude the primary part of the pact as early as attainable, in accordance to an official.
The two sides have agreed to conclude the settlement in two phases on account of the unsure world commerce atmosphere, significantly due to the U.S. tariff actions underneath President Donald Trump.
“The EU team will be here for the 11th round of negotiations. It will continue till May 16,” the official mentioned.
Issues the place there’s convergence could be included within the first half of the settlement. They are aiming to conclude the second half by the tip of this 12 months.
Talks for the earlier (tenth) round centered on areas like market entry gives in items, providers, funding and authorities procurement.
India has adopted the apply of negotiating commerce pacts in two phases with Australia. It is following the same method to the U.S.
Commerce Secretary Sunil Barthwal final month said that “if some of the issues which may not be very core to the trade, maybe taking some more time, then it is better to focus on core trade issues. So, we say that first things first…we are also discussing with the EU what can be the early harvest of the first tranche, where we can do faster”. The secretary, on May 10, held a assessment assembly on the pact with senior officers who’re concerned within the negotiations.
Demands tax discount
Besides demanding vital responsibility cuts in cars and medical gadgets, the EU desires tax discount in merchandise like wines, spirits, meat, poultry and a powerful mental property regime.
Indian items’ exports to the EU, reminiscent of ready-made clothes, prescribed drugs, metal, petroleum merchandise, and electrical equipment, can develop into extra aggressive if the pact will get concluded efficiently.
On May 1, Commerce and Industry Minister Piyush Goyal was in Brussels to talk about progress on the settlement.
In June 2022, India and the 27-nation EU bloc resumed negotiations after a niche of over eight years. It was stalled in 2013 due to variations over the extent of opening up of the markets.
On February 28, Prime Minister Narendra Modi and the European Commission President agreed to seal a much-awaited free commerce deal by the tip of this 12 months.
The India-EU commerce pact negotiations cowl 23 coverage areas or chapters, together with Trade in Goods, Trade in Services, Investment, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Remedies, Rules of Origin, Customs and Trade Facilitation, Competition, Trade Defence, Government Procurement, Dispute Settlement, Intellectual Property Rights, Geographical Indications, and Sustainable Development. India’s bilateral commerce in items with the EU was $137.41 billion in 2023-24 (exports – $75.92 billion, imports – $61.48 billion), making it the most important buying and selling accomplice for items.
The EU market accounts for about 17% of India’s complete exports, whereas exports to India make up 9% of its complete exports.
In addition, the bilateral commerce in providers, in 2023, between India and the EU was estimated at $51.45 billion.
The two sides are negotiating a free commerce settlement, an funding safety settlement and an settlement on geographical indications (GIs).
India and the U.Ok. introduced on May 6 the conclusion of the negotiations for a free commerce deal.
Published – May 11, 2025 10:57 pm IST
