India and the European Union (EU) will commence the 11th round of negotiations for the proposed free trade agreement (FTA) in New Delhi starting May 12, 2025. The talks aim to conclude the first phase of the pact as soon as possible, given the uncertain global trade environment influenced by past U.S. tariff actions under the Trump administration.

The two sides have agreed to a phased approach to finalising the agreement, with the first phase covering issues where there is convergence, and the second phase to be completed by the end of this year. The EU delegation is expected to be in India until May 16 for these discussions.

In the previous round, negotiators focused on critical areas such as market access for goods and services, investment, and government procurement. Commerce Secretary Sunil Barthwal has emphasised a pragmatic approach, prioritizing core trade issues for faster progress while deferring more complex matters.

The EU is seeking significant duty reductions in sectors such as automobiles and medical devices. It is also pressing for tax cuts on products like wines, spirits, meat, and poultry, along with a strong intellectual property rights regime. For India, successfully concluding the pact could boost exports of ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, making them more competitive in the EU market.

On May 1, Commerce and Industry Minister Piyush Goyal visited Brussels to review progress on the agreement. Negotiations had resumed in June 2022 after an eight-year hiatus caused by disagreements over market access.

The India-EU FTA talks encompass 23 chapters, including trade in goods and services, investment protection, sanitary and phytosanitary measures, technical barriers to trade, rules of origin, customs facilitation, competition policy, government procurement, dispute resolution, intellectual property rights, geographical indications, and sustainable development.

India’s bilateral trade in goods with the EU reached $137.41 billion in 2023-24, with exports valued at $75.92 billion and imports at $61.48 billion. The EU accounts for roughly 17% of India’s total exports, while exports from the EU to India represent about 9% of the EU’s total exports. Additionally, bilateral trade in services was estimated at $51.45 billion in 2023.

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The Closed IPOs are Accretion Pharmaceuticals, Integrity Infrabuild Developers.

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