India and the European Union (EU) are heading into a decisive stage in their long-running free trade agreement (FTA) negotiations. The 13th round begins in New Delhi on September 8, with talks shifting from preliminary discussions to the most contentious issues—non-tariff barriers, public procurement, and market access. In order to prepare for the India-EU Summit in early 2026, both parties are rushing to finalize the agreement by the end of 2025.
Why Is This Important Now?
11 of the 23 chapters, which address topics including intellectual property, digital trade (in theory), customs, competition, and subsidies, have been closed by negotiators thus far. Yet, thornier topics remain. India has drawn clear red lines around rice, sugar, and dairy, while the EU is pushing for concessions on automobiles and spirits.
The talks have gained urgency due to global headwinds. The U.S. has recently doubled tariffs on certain imports, hitting India’s shrimp exports—valued at nearly $2.8 billion last year. This makes the EU an increasingly critical alternative market. As one negotiator remarked, “The tariff wars are creating distortion and everyone is interested in figuring out how we can derisk.”
Who Are the Key Players?
The next rounds of talks will be politically charged. EU Trade Commissioner Maros Sefcovic and Agriculture Commissioner Christophe Hansen will travel to Delhi to meet Commerce Minister Piyush Goyal. Prime Minister Narendra Modi has also spoken directly with European leaders, including Ursula von der Leyen and Antonio Costa, underlining the high-level commitment on both sides.
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What Comes Next?
After Delhi, the 14th round will shift to Brussels on October 8, where progress on technical barriers, rules of origin, and services trade will be on the table. In parallel, EU foreign policy chief Kaja Kallas will unveil a new strategic agenda for India-EU ties on September 17, and External Affairs Minister S. Jaishankar will attend the Indo-Pacific Forum in Brussels in November. These moves are building momentum toward the 2026 Summit in India.
If the FTA is successful, Indian exporters will have more access to markets for textiles, IT services, and aquaculture, while consumers may see cheaper European automobiles and spirits in Indian marketplaces. The agreement is seen by both parties as more than just a trade agreement; rather, it is a strategic alliance meant to help navigate volatile international markets and transform Indo-Pacific supply lines.
