EU, India To Resume FTA Talks With AI, Chips, Clean Energy On Agenda
The European Union and India are set to resume talks for a free-trade agreement, as European Commission President Ursula von der Leyen commences her two-day visit to New Delhi on Thursday.
While Leyen will meet with Prime Minister Narendra Modi, India's Commerce Minister Piyush Goyal will hold talks with his counterpart, EU Commissioner for Trade Maros Sefcovic. The talks will largely revolve around negotiations for a free trade agreement, apart from the India-EU Trade and Technology Council.
The talks will deepen engagement "particularly in trade and investments, resilient supply chains, digital technologies, AI, semiconductors, green hydrogen, clean energy, sustainable urbanisation, water management, defence and space," according to India's Ministry of External Affairs.
Lowering tariffs on cars and liquor has been EU's demand, while India has negotiated for concessions for its MSMEs.
The Indian delegation is also likely to bring up concerns around EU's Carbon Border Adjustment Mechanism or CBAM, as well as the region's Deforestation Regulation as a trade barrier. Various leaders, including Goyal and Chief Economic Advisor V Nageswaran, have publicly said that CBAM and EUDR are "trade protection measures garbed in the language of climate and environment".
This is the first ever visit of the EU College of Commissioners together to India and the first visit outside of Europe by the new College of Commissioners that took office in December 2024.
India and the EU entered a 'Strategic Partnership- A Roadmap to 2025' long back in 2004. The two have also been in trade pact negotiations since 2007, with the last round of talks taking place in June 2022.
The EU is India's largest trading partner in goods. Bilateral trade in goods with the EU stood at $135 billion in fiscal 2024, with exports to EU at $76 billion and imports at $59 billion.
Services stood at $53 billion in 2023, comprising Indian exports worth $30 billion and imports worth $23 billion.
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