FX.co ★ India-EU Trade Talks Enter Pivotal Phase

Next week, EU Trade Commissioner Maros Sefcovic is scheduled to visit New Delhi as discussions surrounding a free trade agreement with India show significant advancement, according to Indian Trade Minister Piyush Goyal on Thursday. This visit follows the implementation of substantial U.S. tariff increases on Indian products. After an eight-year hiatus, negotiations with the EU recommenced in 2021 and have now reached an advanced phase. The upcoming round of talks is viewed as critical to finalizing the agreement by the end of this year. The EU is advocating for significant reductions in tariffs on automobiles, medical devices, wine, spirits, and dairy products, whereas India seeks improved market access for its textiles, pharmaceuticals, steel, and petroleum industries. The EU stands as India's largest trade ally, with trade volumes soaring to $137.5 billion in the financial year 2023/24, nearly doubling over the past decade. European Commission President Ursula von der Leyen has reiterated the EU’s objective of sealing the agreement this year after her recent discussion with Prime Minister Modi.