India-EU FTA talks: So far, nine rounds of negotiations have been held till September, 2024 with negotiations covering 23 policy areas/chapters
As part of its trade negotiations with European Union (EU), India is looking to open up its sustainable food systems and small and medium enterprises sectors, according to the Department of Commerce in the Trade and Commerce Ministry. So far, nine rounds of negotiations have been held till September, 2024 with negotiations covering 23 policy areas/chapters. The Free Trade Agreement (FTA) deal between India and the EU, country’s largest trading partner, has been pending for over a decade.
“We will take the mandate from the industry whenever we go for such negotiations. FTA will ensure our SMEs have access to their market and their SMEs will have access to their market. The interests of our SME sector will be taken care of,” Sunil Barthwal, Secretary, Department of Commerce told Outlook Business.
India and the European Union (EU) began negotiations on a free trade agreement (FTA) on June 28, 2007 in Brussels, Belgium. However, the negotiations stalled in 2013 due to disagreements over issues such as customs duties and the movement of professionals. Negotiations were formally re-launched on June 17, 2022, after a nine-year hiatus.
For a long period of time, negotiations around dairy sector have remained a bone of contention between India and the EU. In the 18th Asia Pacific Conference of German Business held in October 2024, Commerce and Industry Minister Piyush Goyal asserted that both India and the European Union (EU) must respect each other's sensitivities to achieve a swift FTA. He even cautioned that there will be no FTA if the trade bloc insists on opening the dairy sector.
India’s trade with EU amounted to €124 billion worth of trade in goods in 2023 .
In 2022, negotiations were also launched for a stand-alone Investment Protection Agreement (IPA) and a Geographical Indicators (GIs) Agreement. The proposed IPA aims to provide a legal framework for cross-border investments to enhance the confidence of investors, the GI pact is expected to establish a transparent and predictable regulatory environment, to facilitate trade of GI products including handicrafts and agri-commodities.