India and the European Union are close to concluding their long-pending free trade agreement. Negotiators from both sides are working daily to resolve the last few issues before the visit of EU leaders to New Delhi from January 25 to 27.
The deal could be announced during the 16th India-EU Summit on January 27.
Commerce Secretary Rajesh Agrawal said talks are in the final phase.
“There are few issues where negotiations are still ongoing. We are virtually engaged on a day to day basis and we are trying to meet the timeline before our leaders meet,” he said.
He added that the leadership meeting would be a good occasion to announce the conclusion of the agreement.
Sensitive agriculture kept out
Agrawal clarified reports from Europe that suggested agriculture has been removed from the deal.
He said the agreement covers all trade areas.
Only sensitive agricultural issues on both sides have been kept out.
“My sense is that sensitive agricultural issues are excluded. The FTA still covers all major aspects of trade,” he said.
This approach helps both sides protect local farmers while moving ahead on broader trade goals.
EU leaders to visit India
The President of the European Council António Costa and European Commission President Ursula von der Leyen will visit India from January 25 to 27.
They will attend the 77th Republic Day celebrations as chief guests.
They will also co-chair the 16th India-EU Summit on January 27.
The Ministry of External Affairs said the announcement of the FTA conclusion could be made during the summit.
The signing may happen later.
The last India-EU Summit was held online in July 2020.
Ties have expanded since then, especially after the EU College of Commissioners visited India in February 2025.
What leaders will discuss
The summit agenda will focus on key areas.
These include:
Trade and investment
Security and defence
Clean energy transition
People-to-people cooperation
Officials from the European Council said these topics will guide the talks.
Final push from both sides
India and the EU have completed talks on 20 out of 24 chapters of the agreement. These chapters include goods, services, investment, customs rules, and dispute settlement. To speed up the final stage, Commerce and Industry Minister Piyush Goyal visited Brussels on January 8 and 9.
He met EU Trade Commissioner Maros Sefcovic. Before that, Rajesh Agrawal held high-level talks with EU trade chief Sabine Weyand on January 6 and 7. Officials say these meetings helped narrow differences. India and the EU began FTA talks in July 2022. They have completed 14 formal negotiation rounds. They have remained in constant talks since October last year.
Why the deal matters
The EU is India’s largest trading partner.
It is also one of India’s biggest investors.
Trade numbers show strong momentum.
Bilateral merchandise trade stood at $90.7 billion in 2024-25
India’s exports reached $51 billion
Imports stood at $39.7 billion
The FTA aims to reduce tariffs, ease regulations, and open new markets for both sides.
It will help Indian exporters gain easier access to Europe.
It will also help European firms expand in India.
What remains unresolved
Officials have not shared details of the four pending chapters.
Sources say they involve:
Investment protection
Government procurement
Rules on digital trade
Sustainability clauses
Negotiators say they are working on practical solutions.
They want an agreement that protects domestic interests while expanding trade.
What happens next
If talks conclude on time, leaders may announce the deal on January 27. The formal signing could follow later in the year. Both sides want to move fast. The global trade climate remains uncertain. Supply chains face pressure. Major economies face slowing growth. India and the EU see the FTA as a long-term economic partnership.
The coming days will decide the final shape of the agreement. Will this deal reshape India’s trade ties with Europe. Will it give Indian exporters a stronger foothold in the EU market. All eyes now turn to New Delhi on January 27.
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