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India, EU aim to seal free trade pact by end of 2025

  • By Al Mayadeen English
  • Source: Agencies
  • 2 May 2025 14:20
3 Min Read

India and the European Union plan to finalize a free trade agreement by 2025. The talks between the two are scheduled to address market access, data protection in IT firms, and intellectual property rights.

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  • Indian Prime Minister Narendra Modi talks to European Commission President Ursula von der Leyen as they leave for their delegation level meeting in New Delhi, India, February 28, 2025 (AP/Manish Swarup)
    Indian Prime Minister Narendra Modi talks to European Commission President Ursula von der Leyen as they leave for their delegation-level meeting in New Delhi, India, on February 28, 2025. (AP/Manish Swarup)

India and the European Union are working toward finalizing a free trade agreement by the end of 2025, according to the Indian Minister of Industry and Commerce, Piyush Goyal.

The announcement followed his meeting with European Commissioner for Trade and Economic Security, Maros Sefcovic, in Brussels.

During their talks, both sides reaffirmed their commitment to advancing the free trade agreement negotiations. Goyal noted that the meeting focused on enhancing market access for businesses in both regions and reinforcing resilient and diversified supply chains.

“We reaffirmed our shared commitment to concluding the India-EU Free Trade Agreement negotiations by the end of 2025,” Goyal stated on his official X page.

Redefining the India–EU Partnership 🇮🇳🇪🇺

In my highly productive dialogue with EU Commissioner for Trade and Economic Security @MarosSefcovic today, we reaffirmed our shared commitment to concluding the India–EU Free Trade Agreement negotiations by the end of 2025.

As we… pic.twitter.com/YtEf27ydh0

— Piyush Goyal (@PiyushGoyal) May 1, 2025

The EU remains India's largest trading partner in goods, with bilateral trade surging nearly 90% over the past decade to reach $137.5 billion in the 2023-2024 fiscal year, the Economic Times reported in February of this year.

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Mobility and workforce exchange were highlighted as important elements in shaping a forward-looking agreement between India and the European Union.

Talks for a free trade agreement between New Delhi and Brussels initially began in 2007. However, discussions were suspended in 2013 due to unresolved issues surrounding intellectual property rights, data protection in IT firms, and access to the European common market for specific goods such as automobiles.

Renewed urgency comes amid rising global trade tensions

The announcement came during European Commission President Ursula von der Leyen’s visit to India on February 27–28, 2025, where she and Prime Minister Narendra Modi outlined a broad roadmap for collaboration across trade, technology, security, and green growth. Talks continued in March, with a summit planned for later this year.

The renewed urgency for talks comes amid rising global trade tensions, including US tariff threats under President Donald Trump. Brussels hopes the deal will strengthen its Indo-Pacific presence and bolster ties with India amid growing friction with Washington.

🇪🇺🤝🇮🇳 pic.twitter.com/tvjomBLvlh

— Ursula von der Leyen (@vonderleyen) February 28, 2025

India seeks reduced EU carbon tariffs on its exports, while the EU pushes for deeper market access in sectors like pharmaceuticals, semiconductors, and clean energy.

Additionally, New Delhi is pushing for reduced tariffs on its exports of textiles, garments, and leather products and opposes an EU plan to impose tariffs of 20% to 35% on high-carbon goods, including steel, aluminum, and cement, from January 2026.

The discussions also addressed key economic priorities, including boosting innovation, enhancing competitiveness, and encouraging investment flows. India is pushing to expand its innovation and manufacturing capacity, particularly in semiconductors, as part of Prime Minister Narendra Modi’s “Make in India” and “Aatmanirbhar Bharat” (Self-Reliant India) initiatives. 

  • India
  • India Free Trade Agreement
  • European Commission
  • European Union

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