India and the European Union have concluded the 14th round of negotiations in Brussels after five days of talks, aiming to finalize a comprehensive free-trade agreement by December.

Top officials from both sides, including Indian Commerce Secretary Rajesh Agrawal and EU trade officials like Sabine Weyand, participated to expedite negotiations.

The negotiations, which resumed in June 2022 after an eight-year hiatus, cover 23 policy areas such as trade in goods and services, investment, intellectual property, and sustainable development.

India’s bilateral trade with the EU was valued at USD 136.53 billion in 2024-25, making the EU its largest trading partner for goods, with exports of USD 75.85 billion and imports of USD 60.68 billion.

The EU accounts for nearly 17% of India’s total exports, while bilateral services trade was estimated at $51.45 billion in 2023.

Key issues include EU demands for duty reductions on automobiles, medical devices, wine, spirits, meat, and poultry, while India seeks duty-free access for its labor-intensive sectors like auto and electronics.

The EU also seeks stronger intellectual property protections and deeper tariff cuts, whereas India aims to make its exports more competitive in sectors like garments, pharmaceuticals, steel, and electrical machinery.

India has demanded exemptions from the EU’s Carbon Border Adjustment Mechanism (CBAM) on imports such as steel, aluminum, cement, and fertilizers, which could impact its exports.

Disagreements persist over trade and sustainable development issues, particularly India’s objections to the EU’s CBAM, and the EU’s environmental policies are being discussed to find common ground.

Negotiators are working to reconcile India’s climate concerns with the EU’s environmental measures, with the EU needing to adjust its approach to reach an acceptable agreement.

Despite ongoing challenges, a senior EU official expressed confidence that the free-trade agreement will be finalized by the end of the year.

Additional diplomatic activities in Brussels include discussions on regional connectivity and infrastructure projects, such as the Global Gateway Forum and the India Middle East Europe Economic Corridor.

The negotiations, which began in June 2022, aim to cover 23 policy areas including trade, investment, intellectual property, dispute settlement, and sustainable development, reflecting the agreement’s comprehensive scope.