From 1980 to 2005, EU-India trade grew from €4.4 billion to €40 billion. At the time, the EU was India's largest trading partner, accounting for 22.4% of Indian exports and 20.8% of imports. While the EU accounted for 21% of Indian trade, India's share of EU trade was less than 1 %, and while the EU was India's largest trading partner, India was the EU's 14th largest partner. 

At the 7th India-EU Summit in Helsinki on 13 October 2006, EU and Indian political leaders recognised that stronger economic engagement is mutually advantageous. In that context, they endorsed the case that had been made for a future broad-based bilateral trade and investment agreement. Negotiations on such an agreement began on 28 June 2007 and covered trade in goods, trade in services, investment, sanitary and phytosanitary measures, technical barriers to trade, trade remedies, rules of origin, customs and trade facilitation, competition, trade defence, government procurement, dispute settlement, intellectual property rights and geographical indications, and sustainable development. However, after 15 rounds of negotiations in Brussels and New Delhi, the talks between the parties had stalled by 2013 and remained in limbo until 2021.

 At the moment, the only legal basis for bilateral trade and services is the most-favoured nation (MFN) principle enshrined in WTO law. Although the EU grants tariff preferences to India under the Generalised Scheme of Preferences, it temporarily suspended them at the beginning of 2023 because the increasing Indian imports into the EU exceeded the defined safeguard thresholds. Moreover, there are currently no agreements for bilateral investment trade, since India unilaterally terminated almost all existing older nationally agreed investment protection treaties with EU Member States.

On 17 June 2022, European Commission Executive Vice-President Valdis Dombrovskis and Indian Commerce Minister Piush Goyal formally relaunched EU-India negotiations on a balanced, ambitious, comprehensive and mutually beneficial free trade agreement.

They also launched EU-India negotiations on an investment protection agreement and on an agreement on geographical indications.

The tenth round took place in Brussels in March 2025. Both sides agreed to intensify their efforts, to try and conclude the agreement by end of 2025. Also, for the first time, sectoral sessions took place looking at specific industries from a holistic perspective, to identify obstacles to market access. 

The eleventh round took place in New Delhi in May 2025. During this round, several chapters were successfully closed. They include transparency, good regulatory practices, customs and trade facilitation, intellectual property rights, as well as mutual administrative assistance provisions. 

The twelfth round of EU-India FTA negotiations took place in Brussels between 7 and 11 July 2025. Given that several chapters were closed during the previous negotiating round, the main focus of negotiators was to get closer to an economically meaningful market access package on Goods, Rules of Origin, SPS, TBT and Services and Investment. The Commission notes that regarding text-based negotiations, both sides managed to reach an agreement in principle on the Digital Trade chapter and Anti-Fraud clause, pending some technical consultations.

The 13th round of negotiations took place in New Delhi on the week of 8 September. According to press reports, significant convergence was achieved in certain areas and the parties aim for an 'early harvest' deal by the end of the year.

The 14th and most recent round took place in October. Negotiators focused on the core pillars of a future agreement. Some progress was made in outstanding areas, in particular on the SPS chapter, which was closed. Going forward, the Commission report notes that discussions at technical level will be taking the form of a continuous intensive engagement at Chief Negotiators’ level, rather than fully fledged rounds.

Negotiations for a Free Trade Agreement concluded on 27 January 2026. The texts will go through legal revision and translation into all official EU languages. The Commission will then put forward its proposal to the Council for the signature and conclusion of the agreement. Once adopted by the Council, the EU and India can sign the agreements. Following the signature, the agreement requires the European Parliament's consent, and the Council's decision on conclusion, for it to enter into force. Once India also ratifies the Agreement, it can enter into force.

References:

• Press statement by DG TRADE: EU and India kick-start ambitious trade agenda
• EP report on EU-India future trade and investment cooperation: https://www.europarl.europa.eu/doceo/document/TA-9-2022-0277_EN.html
• EU Commission Press release EU-India: new Trade and Technology Council to lead on digital transformation, green technologies and trade
• EU Commission EU-India FTA information webpage.

Author: Enrico D'Ambrogio, Members' Research Service, legislative-train@europarl.europa.eu