India and the European Union (EU) on Friday (January 9, 2026) held talks in Brussels on the proposed Free Trade Agreement (FTA) and reaffirmed their commitment to a rules-based trading framework and a modern economic partnership that safeguards the interests of farmers and MSMEs.

Commerce and Industry Minister Piyush Goyal is on a two-day official visit to the EU headquarters for the talks.

He has held high-level talks with EU Trade and Economic Security Commissioner Maros Sefcovic for securing a mutually beneficial FTA.

“During this dialogue, we deliberated across key areas of the proposed agreement. We reaffirmed our commitment to a rules-based trading framework and a modern economic partnership that safeguards the interests of farmers and MSMEs while integrating Indian industries into global supply chains,” Mr. Goyal said in a social media post.

The ministerial engagements follow a week of intensive deliberations in Brussels, building upon the groundwork laid during high-level discussions held earlier this week (January 6-7) between India’s Commerce Secretary Rajesh Agrawal and Director General for Trade of the European Commission Sabine Weyand.

These talks are important as both sides are looking at concluding the negotiations at the earliest. The India-EU Summit is expected on January 27 here and the top EU leadership will grace the Republic Day parade as the chief guest on January 26.

On December 15, 2025, Mr. Agrawal stated that negotiations between India and the 27-nation bloc, the EU, have entered the “most difficult” stage, and both sides are engaged to bridge the differences and close the talks soon.

So far 16 rounds of negotiations have been held.

India is pushing for zero-duty access for its labour-intensive sectors, such as textiles and leather. On the other hand, the EU is demanding significant duty cuts in automobiles, medical devices, wine, spirits, meat, poultry, and a strong intellectual property regime.

In June 2022, India and the EU bloc resumed negotiations for a comprehensive FTA, an investment protection agreement and a pact on geographical indications after a gap of over nine years. The talks were stalled in 2013 due to differences on the level of opening up markets.

India’s bilateral trade in goods with the EU was $136.53 billion in 2024-25 (exports worth USD 75.85 billion and imports worth USD 60.68 billion), making it the largest trading partner for goods.

The EU market accounts for about 17% of India’s total exports, and the bloc’s exports to India constitute 9% of its total overseas shipments.

Indian goods’ exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact sails through.

The India-EU trade pact negotiations cover 23 policy areas or chapters, including trade in goods, services, investment, trade remedies, rules of origin, customs and trade facilitation, competition, government procurement, dispute settlement, intellectual property rights, geographical indications, and sustainable development.

India and the European Union have “significantly” reduced the gaps in their negotiating positions after three days of trade discussions in Brussels, Commerce and Industry Minister Piyush Goyal said on Tuesday (October 28, 2025) evening.

Mr. Goyal and his EU counterpart, Commissioner Maroš Šefčovič, held discussions to provide a political push to help get the negotiations for an India-EU Free Trade Agreement (FTA) over the finish line.

“The talks have significantly reduced our outstanding issues and allowed us to create the framework that will help deliver a win-win for our economies,” Mr. Goyal said on X, describing the discussions as “intense” but “very productive”.

Mr. Goyal posted a video statement by the two Ministers, in which Mr Šefčovič characterised the talks as having occurred in an atmosphere of “full transparency and trust”. The Commissioner also said that “further work is required”. He said substantial progress had been made in a number of areas and the sides had given specific guidance to their teams on industrial tariffs.

Mr. Šefčovič confirmed that a high-level EU trade delegation led by Director-General Sabine Weyand would be in New Delhi next week to conclude “technical tariff negotiations”. A trade delegation from the European Parliament is in New Delhi this week to better understand the challenges and opportunities presented by the trade negotiations.

Contentious issues

Some of the sticking points have included tariffs around agricultural products, a sensitive area for both sides and particularly for India. Tariffs on European automobiles being sold in India have also been under discussion in recent weeks. Regulatory issues, including the EU’s carbon tax on imports (Carbon Border Adjustment Mechanism), have been contentious issues to work through.

Nevertheless, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen had backed a year-end deadline for the FTA, with the 14th round of talks concluding on October 10 in Brussels. The Hindu had reported on October 11 that talks would continue between formal rounds as the sides race to meet the deadline.

“The negotiations and discussions have laid the foundation for a robust and balanced agreement,” Mr. Goyal said.