India, EU Hold FTA Talks, Reaffirm Commitment to Farmers and MSMEs

India and the European Union (EU) on Friday held crucial discussions in Brussels on the proposed Free Trade Agreement (FTA), reaffirming their shared commitment to a rules-based trading system that protects the interests of farmers and micro, small and medium enterprises (MSMEs).

The talks took place during Commerce and Industry Minister Piyush Goyal’s two-day official visit to the EU headquarters, where he met EU Trade and Economic Security Commissioner Maros Sefcovic to advance negotiations toward a mutually beneficial trade pact.

Sharing details of the engagement, Goyal said the dialogue covered key elements of the proposed agreement, with both sides stressing the importance of safeguarding vulnerable sectors while integrating Indian industries into global supply chains. He highlighted that the discussions aimed to balance market access with domestic economic priorities.

The ministerial-level talks followed an intensive week of negotiations between India’s Commerce Secretary Rajesh Agrawal and European Commission Director General for Trade Sabine Weyand. Officials involved described the current phase as one of the most challenging stages of the negotiations, with both sides working to bridge long-standing differences.

The timing of the talks is significant, as India and the EU are keen to conclude the agreement ahead of the India-EU Summit scheduled for January 27. EU leadership is also set to attend India’s Republic Day celebrations as chief guests, underscoring the growing strategic and economic partnership.

India is seeking zero-duty access for labour-intensive sectors such as textiles and leather, while the EU is pressing for tariff reductions in automobiles, medical devices, wine, spirits and agricultural products, alongside stronger intellectual property protections.

Trade experts note that progress on the FTA could significantly enhance India’s export competitiveness in areas such as pharmaceuticals, engineering goods and ready-made garments. A stronger trade framework also supports MSMEs by improving compliance, transparency and financial discipline-areas where structured accounting and bookkeeping services in india play a critical role in helping small businesses align with international trade requirements.

Negotiations resumed in 2022 after a nine-year pause, and so far, 16 rounds of talks have been completed. The agreement spans 23 chapters, covering goods, services, investment, customs facilitation, dispute resolution, sustainable development and intellectual property rights.

With bilateral goods trade touching over $136 billion in 2024-25, both India and the EU view the FTA as a cornerstone for long-term economic cooperation. While differences remain, officials on both sides signalled a strong political will to move the talks forward and reach an early conclusion.