Bargaining with Brussels: India-EU free trade talks in focus

Trade Figures

The EU is India’s second-largest trading partner. Over the past few years, India’s export and import trends with the EU have fluctuated significantly:

• FY21: Exports stood at $41.3 billion, while imports were $39.7 billion.
• FY22: Exports rose to $64.9 billion, and imports reached $51.4 billion.
• FY23: Exports surged to $74.8 billion, with imports at $61 billion.
• FY24: Exports slightly increased to $75.9 billion, while imports dipped to $61.4 billion.
• FY25 (April-Nov): Exports have recorded $50.6 billion so far, with imports at $38 billion.

India’s Top Exports to the EU

India’s Top Imports from the EU

Key Goals of the FTA

• Conclude FTA talks by the end of the year.
• Investment protection agreement and geographical indications pact also in progress.
• Digital public infrastructure to enhance interoperability.
• Mutual recognition of e-signatures to facilitate cross-border digital trade.

WTO Dispute

The EU has challenged India’s import duty on some ICT products, while India is resisting the EU’s domestic enforcement regulation pressure. A 2019 dispute arose over India’s 7.5% duty on specific imports.

What the EU Wants

• Lower import duties on cars, alcoholic beverages.
• Share in India’s government procurement.

India’s Key Demands

• Recognition as a data-secure country.
• Easier work access for its skilled professionals in the EU.
• More market access for textiles, chemicals.
• Lower tariffs on its textiles, leather, and product exports.

Trade Irritants

• EU’s green measures such as CBAM, Deforestation Regulation pose compliance challenges for India.
• India’s quality control orders impact EU exports.
• EU’s traceability norms for textiles, EV batteries are also points of contention.