India-EU FTA: Discussions Continue on Sensitive Issues like Steel, Autos, and Carbon Levy
India and the European Union are negotiating a Free Trade Agreement, aiming to finalize it by the end of 2025. Sensitive areas such as steel, automobiles, the carbon border adjustment mechanism (CBAM), and regulatory matters require further deliberations due to their complexity. Commerce Minister Piyush Goyal met EU officials in Brussels to advance these discussions for a balanced and equitable trade deal.
During a visit to Brussels from October 26 to 28, 2025, Indian Commerce Minister Piyush Goyal engaged in detailed negotiations with European Commission officials focused on finalizing the India-EU Free Trade Agreement (FTA) by year's end. Both sides recognize the need for additional discussions on sensitive sectors including steel and automobiles, as well as the EU’s carbon border adjustment mechanism (CBAM), reflecting their economic and regulatory intricacies. The goal is to establish a balanced, equitable, and mutually beneficial trade pact addressing both tariff and non-tariff barriers. The talks build upon directives from Prime Minister Narendra Modi and European Commission President Ursula von der Leyen earlier in 2025, emphasizing transparent and predictable regulatory norms to facilitate smoother trade. The EU is India's largest trading partner in goods, with trade valued at €124 billion in 2023, illustrating the strategic importance of the agreement. Additionally, ongoing discussions include aspects beyond tariffs, such as sustainable development commitments, investment protection, and geographical indications, aiming for a comprehensive framework to enhance bilateral trade and investment relations.
