India and the European Union are on course to finalise a comprehensive Free Trade Agreement (FTA) by the end of 2024, replacing earlier plans for an interim or early harvest deal, according to a senior official. However, parallel negotiations on the investment protection treaty and the agreement on geographical indications (GIs) may not conclude simultaneously.

“The situation remains dynamic,” the official stated, adding that talks for the expansive trade pact are progressing swiftly. The pivot towards a full-fledged FTA highlights a mutual commitment to building a strong, long-term economic partnership.

Negotiations for the India-EU FTA — including the investment and GI components — were relaunched in June 2022 after being stalled for over eight years due to disagreements over market access and regulatory alignment. Talks initially broke down in 2013.

Geographical indications, or GIs, refer to region-specific products known for their distinct qualities — such as Darjeeling tea or Banarasi sarees — that reflect their place of origin.

Earlier this year, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen agreed to expedite talks and aim for conclusion by the end of 2024.

The FTA negotiations cover 23 vital policy areas, including trade in goods and services, investment protection, rules of origin, technical barriers to trade, sanitary and phytosanitary standards, government procurement, IPR, dispute resolution, and sustainability.

The European Union is currently India’s largest trading partner in goods. Bilateral trade stood at $137.41 billion in 2023–24, with Indian exports to the EU at $75.92 billion and imports at $61.48 billion.

Following discussions with Commerce and Industry Minister Piyush Goyal, French Minister of Foreign Trade Laurent Saint-Martin expressed optimism, saying, “I am pretty optimistic about the fact that we can have an agreement in the coming weeks or months. We must demonstrate to the world our commitment to trade, to freer trade, and not trade wars.”

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The momentum toward a full-scale agreement signals increasing alignment between India and the EU on global trade frameworks, sustainability goals, and strategic economic cooperation — marking a critical milestone in deepening bilateral relations.

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