India and EU will push for trade deal as deadline approaches, Indian minister says

NEW DELHI: India and the European Union will work to seal a long-pending trade deal at the earliest opportunity, New Delhi said on Wednesday, after concluding another round of talks amid signs that a year-end deadline may slip.

Indian Commerce Minister Piyush Goyal met an EU delegation led by European Commissioner for Trade and Economic Security Maros Sefcovic on Monday, as the two sides continued efforts to conclude the pact, the statement said.

Both sides have been pushing to close a broad trade deal after European Commission President Ursula von der Leyen and Prime Minister Narendra Modi agreed earlier this year to fast-track negotiations towards a year-end target.

Talks relaunched in 2022 have gained pace since U.S. President Donald Trump imposed tariff hikes on trading partners including India. Brussels sealed deals with Mexico and Indonesia and stepped up talks with India.

Once implemented, the pact could further lift India-EU bilateral trade, which reached 120 billion euros ($139.75 billion) in 2024, with the balance in India’s favour.

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Officials, however, said despite political will to conclude a deal, many issues still remain unresolved.

“Progress has been uneven, with key differences persisting on tariffs, market access and the enforceability of sustainability commitments,” said an official, with knowledge of the trade talks.

The issues related to steel, automobiles, carbon levies and other EU regulations require further discussions due to sensitivities on both sides, an industry source said.

The EU wants steep tariff cuts on cars, medical devices, wine, spirits and meat, along with stronger intellectual property rules, while India is seeking duty-free access for labour-intensive goods and faster recognition of its growing autos and electronics sectors, the officials said.

Talks on investment protection and geographical indications are running in parallel. The FTA covers 23 chapters, with 11 closed in the last round of talks in Brussels, officials added.