India and EU Commit to Finalizing FTA by End of 2025
Shri Piyush Goyal, India’s Minister of Commerce and Industry, and Mr. Maroลก ล efฤoviฤ, the European Commissioner for Trade and Economic Security, recently held a significant dialogue aimed at tackling global trade challenges. They reaffirmed their commitment to finalizing the India-European Union Free Trade Agreement (FTA) by the end of 2025. This initiative builds on the strategic direction set by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen during the EU College of Commissioners’ visit to New Delhi in February 2025.
Strategic Importance of the Dialogue
The discussions between Goyal and ล efฤoviฤ highlight the strategic importance both India and the EU place on developing a robust and fair trade partnership. This partnership aims to foster economic resilience and inclusive growth. The meeting underscored the progress made in various negotiation tracks and emphasized the need to maintain momentum through regular monthly negotiations and ongoing virtual engagements. Both parties expressed their commitment to addressing outstanding issues with mutual respect and pragmatism, with the next round of negotiations scheduled for May 12-16, 2025, in New Delhi.
Focus on Non-Tariff Barriers
India has stressed that achieving meaningful progress in trade negotiations requires equal attention to non-tariff barriers (NTBs) alongside tariff discussions. The regulatory frameworks must be inclusive and proportionate, avoiding any restrictions that could hinder trade. This balanced approach is crucial for ensuring that both sides can benefit from the FTA, which aspires to reflect the evolving realities of global commerce. By addressing these barriers, the agreement aims to support digital transitions and promote diversified and resilient supply chains.
Transformative Potential of the FTA
The India-EU FTA is envisioned as a transformative pillar of the broader strategic partnership between the two regions. Once finalized, it is expected to enhance market access, support regulatory cooperation, and foster innovation and competitiveness. Both sides acknowledged the vital role of investment flows and people-to-people mobility in sustaining economic vitality. The agreement is seen as a key driver for both economies, facilitating a more integrated and dynamic trade relationship.
India’s Broader Vision for Trade
In line with India’s aspirations to emerge as a “Vishwa Mitra” or global partner, the FTA is viewed as a tool to promote diversified production networks and uphold fair trade principles. As India continues to expand its global footprint through various free trade agreements, this dialogue reflects its vision of creating a future-ready framework that aligns with national priorities and global aspirations. The India-EU FTA is not just a trade agreement; it is a strategic initiative that aims to shape the future of trade relations between India and Europe.
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