Piyush Goyal Says Major Progress Achieved in EU Trade Talks Despite Steep Trump Tariffs

Commerce and Industry Minister Piyush Goyal on Wednesday highlighted substantial progress in the India-European Union (EU) Free Trade Agreement (FTA) negotiations during his three-day visit to Brussels from October 26-28. India is keen to conclude the FTA, as the EU provides a stable and significant market for Indian merchandise exports. India’s exports to the EU in the last financial year stood at $82 billion, slightly below exports to the US ($86.5 billion).

During the Brussels visit, Goyal noted that 10 out of 20 chapters of the FTA have been closed, with four or five additional chapters largely agreed upon. On several other issues, the two sides are moving toward convergence. The aim is to position both sides for meaningful progress when the EU team visits next week for further negotiations or when Trade Commissioner Maros Sefcovic visits India in November or December. Goyal emphasized that the negotiations seek a fair, equitable, and balanced FTA, recognizing mutual sensitivities and strengths, while promoting trade, investment, technology flow, and mobility.

The Ministry of Commerce and Industry issued a press statement reaffirming that both India and the EU are committed to concluding the FTA by the end of 2025. This commitment follows directives from Prime Minister Narendra Modi and European Commission President Ursula von der Leyen during the College of Commissioners’ visit to New Delhi in February 2025.

The EU has highlighted the importance of automobiles and beverages within the trade deal. However, the Commerce Ministry noted that several high-sensitivity issues—including steel, automobiles, carbon tax (CBAM), and other EU regulations—require further discussion. These issues are considered particularly sensitive due to their economic and regulatory implications.

India is negotiating the FTA amid rising US tariffs on Indian products, which have begun affecting exports. Indian goods exports to the US declined by 12 percent in September 2025, though shipments to the UAE and China helped achieve overall export growth of over 6 percent. With US-China trade talks underway, including a planned meeting between US President Donald Trump and Chinese President Xi Jinping, India’s agreements with the EU and the US assume even greater strategic significance.

Goyal stressed that India is pursuing negotiations with multiple trade partners simultaneously. He will visit New Zealand next week to finalize another free trade agreement. He underlined that reaching a balanced deal that respects sensitivities on both sides is more important than adhering to any strict deadline.

The Commerce Ministry emphasized that negotiations involved intensive engagement to identify potential landing zones for outstanding issues. Discussions also covered India’s concerns over non-tariff measures and new EU regulations. Goyal highlighted the need for preferential treatment for India’s key asks, especially in labor-intensive sectors, while both sides agreed to finalize non-sensitive industrial tariff lines.

To advance negotiations, the EU technical team led by the Director-General for Trade will visit India next week. The objective is to achieve constructive conclusions based on potential solutions identified in the prior discussions. These efforts are intended to ensure that the India-EU FTA, when finalized, provides mutual benefits, balances economic sensitivities, and enhances bilateral trade, investment, and technological collaboration.

In summary, the India-EU FTA talks are making significant progress, with several chapters closed and agreements reached on key issues. Remaining high-sensitivity topics are under focused discussion, and both sides are committed to concluding the FTA by 2025, thereby securing a strategic and economically beneficial agreement for India’s global trade interests.