India-EU FTA: Outstanding issues remain, but ‘good progress’ made

Union Minister Piyush Goyal in conversation with EU Trade and Economic Security Commissioner Maroš Šefčovič, in Brussels on Friday, January 09, 2026. (@PiyushGoyalX/ANI Photo)
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India and the EU are yet to resolve all outstanding issues in the ongoing negotiations for a bilateral free trade agreement (FTA) after two-day “marathon talks” between Commerce Minister Piyush Goyal and his EU counterpart in Brussels this week. But both sides are optimistic about the “good progress” made.

“Great to host my counterpart and friend Piyush Goyal for an intense 2-day marathon of talks… Good progress made. Open issues narrowing. Full steam ahead in the coming days,” EU Trade Commissioner Maroš Šefčovič posted on social media platform X early on Saturday (India time).

The negotiations are stuck over a handful of issues such as India’s concerns over the EU’s carbon tax and steel import quotas and the bloc’s higher market access aspirations for automobiles and dairy, sources said.

The Indian Commerce Minister joined his team of top trade negotiators in Brussels earlier this week to lend political momentum to the proposed FTA talks. Both sides want the negotiations to be substantially concluded ahead of the visit of European Commission President Ursula von der Leyen and European Council President Antonio Costa to Delhi to participate in the country’s Republic Day celebrations on January 26.

Goyal, in his social media post, described his meeting with Šefčovič as productive. “We made good progress and provided strategic guidance to our negotiating teams and reaffirmed our strong political resolve to deliver a fair, balanced and ambitious agreement aligned with the economic priorities of both India and the EU,” Goyal said.

Both India and the EU have a shared goal of a balanced, mutually beneficial trade and investment agreement to boost EU-India relations, Šefčovič said.

In 2024–25, the EU was India’s top goods trading partner, with bilateral trade at $136.53 billion. India had a trade surplus, exporting $75.85 billion worth of goods while importing $60.68 billion.

With growing global uncertainties, including US President Donald Trump’s unpredictable tariff regime, both India and the EU had aimed to conclude the FTA talks this month. It is hoped that an announcement could be made during the EU leaders’ visit to Delhi this month-end, possibly at the India-EU Summit.

However, with the sticking issues still unresolved, it is not clear if the deal could be concluded this month. But the two sides would keep making efforts, as Šefčovič suggested.

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Published on January 10, 2026