Commerce and industry minister Piyush Goyal said India and the EU are committed to a mutually beneficial and ambitious FTA for the prosperity of businesses and people on both sides. “Pleased to agree that sustained & constructive engagement between us & our teams over the past year has brought us closer to a fruitful outcome,” Goyal wrote in a post on microblogging platform X, replying to EU trade commissioner Maros Sefcovic. “The European Union remains a vital economic & strategic partner for India,” the minister said. India and the EU are set to announce on January 27 the conclusion of negotiations and finalisation of an FTA, aimed at boosting economic ties between the two regions amid disruptions in global trade due to US tariffs. The conclusion of talks for the agreement will be announced at the India-EU summit.
Sefcovic, who is visiting India with other officials, said it will be his tenth in-person engagement with Goyal.
“I’m confident to say we’re nearing the conclusion of our FTA negotiations. The cumulation of an intense past year-likely my most frequent trade engagement-reflecting its importance,” Sefcovic said in a post on X.
The pact is nearing the finishing line after 18 years.
Goyal has termed this pact as the “mother of all deals” India has signed so far. European Commission President Ursula von der Leyen landed here on January 24 for a four-day visit. President of the European Council Antonio Costa and von der Leyen will hold summit talks with PM Narendra Modi on January 27.
The EU remains India’s largest trading partner for goods, with bilateral trade reaching about $136 billion in 2024-25.While the two sides will announce closure of FTA talks this week, the pact would be signed after legal vetting of the text on a mutually agreed date. Implementation of the deal may take some time as it requires approval of the EU Parliament. In India, it requires the clearance of only the Union Cabinet.
India’s gains
The pact is likely to lower costs and expand trade rather than threaten the domestic industry, think tank Global Trade Research Initiative (GTRI) said, adding that the India-EU economic relationship stands out for its clarity of purpose. “The two are not rivals but partners operating on different rungs of the value chain,” GTRI said.
While India exports labour-intensive, downstream and processing-based goods to the bloc, the EU supplies capital goods, advanced technology and industrial inputs. “This structural complementarity explains why an India-EU FTA is likely to lower costs and expand trade rather than threaten domestic industry,” GTRI founder Ajay Srivastava said.