“I can’t think about a state of affairs the place we’re not near or haven’t concluded the FTA on the finish of the 12 months,” an EU official, who didn’t wish to be named, informed The Hindu on Thursday (October 9, 2025).
Rajesh Agrawal, who has so far led the negotiations with the U.S. and brought over as Commerce Secretary on October 1, was in Brussels this week, departing town on Friday (October 10, 2025) night. The Hindu understands that with Mr. Agrawal’s appointment as Commerce Secretary, the Ministry’s Darpan Jain will lead India’s negotiations with the U.S., with Mr. Agrawal nonetheless having a really hands-on position in these talks.
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The Indian negotiating workforce for the EU, led by L. Satya Srinivas, is scheduled to depart the Belgian capital on Saturday (October 11, 2025). Another spherical of talks is anticipated to be held in New Delhi in November however discussions will proceed within the interregnum.
Bilateral commerce in items in 2024 stood at €120 billion ($139 billion) however difficulties stay and either side complain of tariff and non-tariff boundaries. Challenging areas have included providers, agricultural and dairy sectors, pharma, cars, wines and spirits. The sides have determined to put aside probably the most delicate areas from the negotiations.
While officers are underneath a political mandate set by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen in February this 12 months to conclude an settlement by the top of 2025, a few of these powerful points stay, together with “commerce and sustainable improvement”.
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India has for lengthy objected to the EU’s Carbon Border Adjustment Mechanism (CBAM). The tax, which seeks to cost emissions launched through the manufacturing of products, together with imports, is because of come into full impact on January 1, after a two-year transition interval.
Commerce and Industry Minister Piyush Goyal has repeatedly mentioned that India will retaliate if its merchandise are topic to the mechanism. Mr. Goyal had warned, in a speech in New York on the finish of September, that the CBAM “entice” might isolate Europe and trigger inflation there. The authorities has additionally objected to bundling local weather motion with commerce.
The points round CBAM and sustainability had been very a lot nonetheless underneath dialogue as of Friday (October 10, 2025) afternoon, The Hindu realized from one other supply with direct data of the negotiations.
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The EU would want to regulate its strategy on commerce and sustainable improvement so the result is “one thing India can dwell with”, Chief Negotiator Christophe Kiener had informed the European Parliament’s commerce committee on September 25, saying a chapter on commerce and sustainable improvement will nonetheless, nonetheless, be wanted. Mr. Kiener had additionally mentioned that whereas the perimeters had not made progress within the thirteenth spherical in New Delhi, that they had improved their understanding of one another. Towards the top of such negotiations “issues are sure to be tough”, Mr. Kiener had mentioned.
For the EU, India’s Quality Control Orders (QCOs) are among the many oft cited difficulties.
India’s Ambassador in Brussels, Saurabh Kumar, is optimistic in regards to the commerce talks.
“It just isn’t a single level or one specific facet that has overarching weight. Trade negotiations by definition will not be simple and there are difficulties, however either side are dedicated to it (the FTA) and decided to finish it,” Mr. Kumar informed The Hindu on Friday (October 10, 2025), including, “There is a robust political directive to finish discussions by December.”
Mr. Goyal is anticipated in Brussels on the finish of the month.
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IMEC ‘Sherpa’ Meeting Held
Brussels has been busy this week, with extra than simply commerce. The Global Gateway Forum (the bloc’s technique for funding in different jurisdictions) was additionally held this week together with a steering assembly (i.e., a ‘Sherpa’ assembly) for the India Middle East Europe Economic Corridor (IMEC). Deputy NSA Pavan Kapoor, who represented India on the assembly, participated nearly.
With a ceasefire kicking off between Israel and Gaza and the potential for much less combating sooner or later, Brussels is eager on the challenge that was introduced on the G20 Summit in New Delhi in September 2023. The hall, when constructed, will present transport, fibre optic and vitality routes from India to Europe by way of West Asia.
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“We are very eager on it, and the Indians are very eager on it, as are others. And we now have these numerous investments we’re making to help legs of it. The key factor is the Middle East being sorted out,” the EU official mentioned, including that Washington’s consideration to the difficulty was nonetheless essential.
“We want the oomph of the Americans as properly,” they mentioned.
Asked if there was any particular limiting issue to operationalise the IMEC challenge, Mr. Kumar mentioned the nations concerned within the challenge had been now figuring out their duties.
“There isn’t any limiting issue. The nations concerned try to organise themselves as to how they’re to maneuver forward and who takes care of which facet,” he mentioned.
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