India, EU Push to Finalise Free Trade Deal by 2025 Amid Sticking Points on Steel and Carbon Levies
India and the European Union have agreed that key issues such as steel, automobiles, and the EU’s carbon levy need further discussion, citing their sensitivity, according to a statement from New Delhi. Commerce and Industry Minister Piyush Goyal held talks with European Commissioner for Trade and Economic Security Maros Sefcovic in Brussels during his October 26–28 visit, as both sides intensified efforts to conclude a long-pending free trade agreement (FTA).
The two sides reaffirmed their commitment to finalising the FTA by the end of 2025, following directions from Prime Minister Narendra Modi and European Commission President Ursula von der Leyen. Negotiations, relaunched in 2022, have gained momentum as Brussels seeks to speed up trade deals with partners including Mexico, Mercosur, India, Indonesia, and the UAE. Goyal described the discussions as “productive and meaningful,” stressing the need for a “balanced and equitable agreement” that ensures transparency and predictability.
India, which counts the EU as its largest trading partner with bilateral trade reaching $137.5 billion in 2023–24, reiterated calls for preferential treatment for labour-intensive sectors such as textiles and leather. Both sides explored “possible landing zones” on unresolved matters, while an EU technical team is expected to visit India next week to work on potential solutions identified during the Brussels meetings.
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