India-EU FTA talks have entered the final stage; both sides aim to conclude negotiations by end-2025.
India and the US are in advanced discussions to reduce the 50% reciprocal tariff and remove the 25% punitive duty imposed in August.
India is simultaneously progressing trade talks with Chile and New Zealand as part of broader market diversification efforts.
India-EU FTA Talks in Final Stage, Says Commerce Secretary; Tariff Reduction with US Also in Focus
Meanwhile, the fourth round of FTA talks with Chile is expected next month, while negotiations with New Zealand have also entered the final stretch, with another round scheduled for December
X: Piyush Goyal
Summary
Advertisement
India’s free trade agreement (FTA) negotiations with the European Union have reached their final phase, even as talks with the United States advance on reducing reciprocal tariffs, Commerce Secretary Rajesh Agarwal said on Monday.
Agarwal said India continues to engage the US on scaling back the steep 50% reciprocal tariffs currently applied on Indian goods. Discussions are also focused on eliminating the 25% punitive tariff imposed by Washington in mid-August over India’s discounted oil trade with Russia.
On the EU front, Agarwal noted that negotiations “are now in the final stage,” though the process will remain time-consuming due to the breadth of the agreement. India and the bloc aim to conclude the FTA by the end of 2025, with both sides having significantly narrowed gaps across key chapters. According to reports, New Delhi and Brussels have agreed to accelerate efforts toward a mutually beneficial pact.
India’s Diversification and Market Access Efforts
Meanwhile, the fourth round of FTA talks with Chile is expected next month, while negotiations with New Zealand have also entered the final stretch, with another round scheduled for December. “One part is the overall BTA negotiations with the US, which will take time. The first tranche will focus on reciprocal tariffs and related issues, and that package is near closure,” Moneycontrol quoted a Commerce Ministry official as saying.
Advertisement
India–US Bilateral Trade Agreement
India and the US have completed six rounds of talks since negotiations began in March, the latest held in Washington in October. India is seeking tariff relief as its exporters face a sharp fall in shipments to the US. Indian merchandise exports to the US are subject to the aggressive 50% reciprocal tariff, contributing to widening trade imbalances.
India’s merchandise trade deficit rose to $41.68 billion in October from $32.15 billion in September, driven by a surge in gold and silver imports and a drop in exports to the US. India exported goods worth $86.51 billion to the US in FY25, with the top five categories accounting for nearly $60 billion.
Show comments