The European Union and India have once again expressed their intention to conclude a long-pending Free Trade Agreement (FTA) by the end of 2025, following talks between Indian Minister for Commerce and Industry Piyush Goyal and European Commissioner for Trade and Economic Security Maroš Šefčovič in Brussels.

“We are making solid headway towards a balanced, mutually beneficial deal. Let’s get this deal done by the end of this year,” Šefčovič said in a press statement after the meeting held on May 1, Labour Day.

Nodding in agreement, Goyal added, “We reaffirmed our shared commitment to conclude negotiations by the end of 2025.”

The target date of December 2025 was first announced in New Delhi after talks between European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi. Von der Leyen was accompanied by most of her 26 EU Commissioners during the landmark visit to India from February 27–28.

Is the deadline achievable?

Yet, seasoned watchers of the EU-India FTA negotiations remain sceptical about whether this self-imposed deadline is achievable. They warn that a deal of such magnitude — affecting millions of people — should not be rushed. Every word in the draft text, and every new negotiating line, demands detailed discussion with a wide array of stakeholders, making the process inherently time-consuming.

Talks have been ongoing for years, and several optimistic deadlines have come and gone without fruition.

“It is true that EU-India free trade negotiations have been going on for the last eighteen years, and many times the promised conclusion has failed to materialize,” commented Sunil Prasad, Secretary General of the Brussels-based Europe India Chamber of Commerce.

Goyal noted that in his Brussels meetings, attention was given to non-tariff barriers along with tariff-related issues.

“Respecting the sensitivities that our businesses and our economies may have in certain sectors, the agreement — once concluded — will be a transformative pillar of the EU-India partnership. We remain committed to resolving pending issues in a spirit of mutual respect and pragmatism,” he stressed.

However, the rapidly shifting geopolitical landscape is injecting fresh momentum into the talks. Amid the ongoing Ukraine war, former US President Donald Trump’s trade wars, and India’s tense relations with China and Pakistan, a breakthrough on the FTA appears more attainable than before.

“In this climate of global uncertainty, our businesses are looking for opportunity, access, and predictability,” noted the EU Commissioner.

Redesigning strategic partnership

On his part, Sunil Prasad told South Asia Monitor that as the world becomes a more complex and dangerous place, it will depend on how the EU and India redesign their strategic partnership — with free trade becoming one of its most important pillars for stability and economic growth.

“Both parties seem serious and keen to conclude the negotiations. Another factor putting pressure on the EU is the UK-India free trade negotiations, which are progressing smoothly and productively. India may want to set a benchmark by concluding the UK deal first, which could guide the EU-India talks forward,” he added.

If concluded, the deal would be one of the most significant trade agreements for India, as the European Union is its second-largest trading partner after the United States.

According to figures from the European Commission, the EU accounted for €124 billion worth of goods trade with India in 2023 — or 12.2% of India's total trade — surpassing both the USA (10.8%) and China (10.5%).

The EU is also the second-largest destination for Indian exports (17.5% of the total), just behind the USA (17.6%).

Bilateral trade in services between the EU and India reached €59.7 billion in 2023, up from €30.4 billion in 2020. Around 6,000 European companies are currently operating in India.

After six years and 15 rounds of talks, the EU-India FTA negotiations collapsed in 2013 due to disagreements across multiple sectors. In June 2022, European Commission Executive Vice-President Valdis Dombrovskis and Minister Goyal formally relaunched negotiations for a balanced, ambitious, comprehensive, and mutually beneficial agreement.

The two sides concluded the 10th round of negotiations in Brussels last March. The next round is scheduled for May 12–16 in New Delhi.

Consequences are far-reaching

Free trade agreements are not mere documents to be rushed through for headlines. Their consequences are far-reaching — impacting farmers, workers, businesses, and consumers on both continents. Each clause carries weight. Every concession can ripple across entire sectors. Responsible negotiation demands painstaking attention to detail, particularly when bridging economies as different and politically complex as those of India and the EU.

If the goal is to deliver a fair, equitable, and enforceable agreement, then ambition must be matched by patience and realism. The December 2025 deadline may serve as a useful motivator, but it should not become a race to the finish line. In this case, better late and right than rushed and regrettable.

(The author is an Indian journalist and long-time resident of Brussels. Views expressed are personal. He can be reached at nawabk98@gmail.com )