India’s Commerce Ministry on Thursday said negotiations for a Free Trade Agreement (FTA) with the European Union are progressing on a day-to-day basis
in virtual mode, with 20 of the 24 chapters already closed.
The Ministry said the talks have entered their last and most arduous phase, which has been underway for the past three months. Both sides are working towards closing negotiations ahead of a potential meeting between their respective leaders later this month, although any formal announcement will depend on how discussions progress.
The Ministry also clarified that sensitive agricultural issues on both sides are already off the table.
Government sources had earlier indicated that negotiations are ongoing on issues such as the Carbon Border Adjustment Mechanism (CBAM), Geographical Indications (GI), critical minerals, intellectual property rights (IPR), and other trade and regulatory matters. Sources said both sides have exchanged lists of GI-tagged products for potential inclusion in the agreement, while separate negotiations are underway for both the FTA and an investment protection pact.
India defines GI-tagged goods as products “originating from a specific location and having distinct nature, quality and characteristics linked to that location.”
Sources also indicated that the EU is seeking no restrictions on the export of critical minerals from India, including through duties. The bloc had earlier challenged Indonesia’s ban on nickel exports at the World Trade Organization (WTO).
India, meanwhile, is expected to seek carve-outs or exemptions for stainless-steel exports to the EU in light of higher duties imposed by the bloc. The Ministry of Commerce and Industry has already held consultations with stakeholders from the automobile and steel sectors.
The EU has proposed expanding CBAM to cover 180 downstream products, with CBAM certificates scheduled to be sold from 1 February 2027 for goods imported in 2026.
The EU is India’s largest trading partner, with bilateral goods trade reaching $137.5 billion in FY 2023-24. While India is looking to expand exports of labour-intensive goods through greater market access, the EU is seeking improved access for automobiles and liquor.
Both sides have completed 14 rounds of negotiations so far. Commerce and Industry Minister Piyush Goyal held discussions with EU Commissioner for Trade and Economic Security Maroš Šefčovič in New Delhi on December 8 and 9, 2025, to provide strategic guidance to negotiating teams as they work towards concluding the agreement at the earliest.
The talks have covered key chapters including market access for goods, rules of origin, services, technical barriers to trade, and trade and sustainable development.
