TL;DR
India and the EU are in ongoing FTA talks, focusing on sensitive areas like automotive trade, steel, and carbon tax, aiming for a balanced agreement by end-2025.
India and the European Union are continuing intensive discussions on sensitive issues, including steel, automobiles, and carbon tax, as part of their ongoing free trade agreement (FTA) negotiations. During Commerce and Industry Minister Piyush Goyal's recent visit to Brussels, both sides acknowledged the higher sensitivities surrounding these sectors and agreed to dedicate further discussions to address them comprehensively.
India has emphasized the importance of addressing both tariff and non-tariff barriers within the pact, advocating for transparent and predictable regulatory frameworks to foster bilateral trade. The EU's proposed regulations, such as the Carbon Border Adjustment Mechanism (CBAM), which could impose tariffs on Indian exports like steel and aluminum, remain a point of contention. Both parties have reaffirmed their commitment to finalize the FTA negotiations by the end of 2025, aiming for a balanced agreement that accelerates trade between the partners.
