Daijiworld Media Network - New Delhi

New Delhi, Jul 16: India and the European Union (EU) are set to hold the next round of negotiations on their proposed free trade agreement (FTA) in the first week of September, a senior government official said on Tuesday.

L Satya Srinivas, Special Secretary in the Department of Commerce, confirmed that the 12th round of talks concluded last week in Brussels, where both sides exchanged offers in the services and non-services sectors.

“We have exchanged our offers on services and non-services... and also held discussions on key market access interests in goods,” Srinivas informed.

Negotiations between India and the 27-member EU bloc resumed in June 2022 after being suspended for over eight years due to differences on market liberalisation. The talks now aim to finalise a comprehensive FTA, along with separate agreements on investment protection and geographical indications (GIs).

Significant EU demands include tariff reductions on automobiles, wines, spirits, meat, poultry, and medical devices, alongside a stronger intellectual property rights regime. In return, India is seeking better market access for sectors such as textiles, pharmaceuticals, steel, petroleum products, and electronics.

The proposed FTA covers 23 broad policy areas, including trade in goods and services, investment, sanitary standards, rules of origin, customs procedures, government procurement, dispute resolution, and sustainable development.

In 2023-24, India’s bilateral trade in goods with the EU reached USD 137.41 billion, making the EU India's largest trading partner in goods. Exports stood at USD 75.92 billion while imports were at USD 61.48 billion. Services trade between the two sides was valued at USD 51.45 billion in 2023.

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen have set an ambitious target to conclude the trade deal by the end of this year.