Union Commerce and Industry Minister Piyush Goyal is embarking on a crucial diplomatic mission to Europe this week, aiming to break the deadlock in the long-awaited Free Trade Agreement (FTA) between India and the European Union. The negotiations have now entered their final and most challenging stage, making this visit pivotal for the future of bilateral trade.
High-Stakes Meetings in Brussels
Minister Goyal will be in Brussels on January 8 and 9 for high-level discussions with EU leadership. He is scheduled to meet Maros Sefcovic, the Executive Vice-President and European Commissioner for Trade. Goyal is expected to depart from India on Tuesday night, with Commerce Secretary Rajesh Agrawal also joining the talks in Brussels.
This visit is timed at a critical juncture for the India-EU FTA. Both sides are intensifying efforts to conclude negotiations that have spanned several years. Officials have described the current phase as the "most complex" and "most difficult," with several sensitive issues still on the table requiring resolution.
Liechtenstein Stopover and Key Sticking Points
Ahead of the Brussels summit, Goyal will make a stop in Liechtenstein on January 7. The discussions there will focus on expanding trade and investment ties. Liechtenstein is a member of the European Free Trade Association (EFTA), a bloc that also includes Iceland, Norway, and Switzerland. Notably, India and the EFTA bloc successfully implemented their own free trade agreement on October 1, 2025.
Back in the EU negotiations, one of the major points of discussion is the European Union's Carbon Border Adjustment Mechanism (CBAM), which poses significant implications for Indian exports. Other chapters under discussion include trade in goods and services, investment, rules of origin, and technical barriers to trade.
The EU has been pushing for substantial tariff reductions in sectors like automobiles and medical devices, alongside lower taxes on products such as wine, spirits, meat, and poultry. A stronger intellectual property rights regime is also on the EU's agenda. Conversely, Indian exporters stand to gain massively in sectors like garments, pharmaceuticals, steel, petroleum products, and electrical machinery if the deal is sealed.
A Long Road to Final Negotiations
India and the EU resumed talks for a comprehensive free trade agreement in June 2022, after an eight-year hiatus. The negotiations were originally suspended in 2013 due to disagreements over market access commitments. The revived talks also include parallel negotiations on an investment protection pact and an agreement on geographical indications.
The economic stakes are enormous. The European Union is India's largest trading partner in goods. According to reports, bilateral trade in goods stood at $136.53 billion in 2024-25. Indian exports to the EU were valued at $75.85 billion, while imports were at $60.68 billion. The EU accounts for approximately 17% of India's total exports, while exports to India constitute about 9% of the bloc's global shipments.
The 16th round of FTA negotiations was held from December 3 to 9, where key chapters were debated. The entire India-EU trade negotiation framework spans 23 chapters, covering areas from customs procedures and trade facilitation to government procurement, dispute settlement, and sustainable development. All eyes are now on Brussels as both sides work to bridge the final gaps for an early conclusion.
