BRUSSELS
Officials from both India and the European Union are expressing strong confidence that a comprehensive trade agreement can be finalized by the end of this year. This optimism comes as the 14th round of negotiations recently concluded in Brussels on Friday, October 10, 2025.
One anonymous EU official shared their positive outlook with The Hindu on Thursday, October 9, 2025, stating, “I can’t imagine a scenario where we’re not close to or have not concluded the FTA at the end of the year.”
Rajesh Agrawal, who recently took over as Commerce Secretary on October 1, was actively involved in this week’s discussions in Brussels before his departure on Friday evening. While Mr. Agrawal will maintain a significant role in these talks, Darpan Jain from the Ministry is expected to lead India’s negotiations with the U.S.
The Indian negotiating team for the EU, led by L. Satya Srinivas, is set to leave the Belgian capital on Saturday, October 11, 2025. Another round of formal talks is planned for New Delhi in November, with continuous discussions expected in the interim period.
Despite bilateral trade in goods reaching €120 billion ($139 billion) in 2024, both sides acknowledge lingering difficulties concerning tariff and non-tariff barriers. Key challenging sectors include services, agriculture, dairy, pharmaceuticals, automobiles, and alcoholic beverages. To facilitate progress, some of the most sensitive issues have been temporarily set aside.
A political mandate, established by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen in February, underscores the urgency to conclude this agreement by the end of 2025. However, complex topics such as “trade and sustainable development” remain significant sticking points.
India has consistently voiced objections to the EU’s Carbon Border Adjustment Mechanism (CBAM). This carbon tax, designed to account for emissions during the production of goods—including imports—is scheduled for full implementation on January 1, following a two-year transitional phase.
Union Commerce and Industry Minister Piyush Goyal has firmly stated that India will take reciprocal action if its products are subjected to the CBAM. In a September speech in New York, Mr. Goyal cautioned that the “CBAM trap” could isolate Europe and potentially trigger inflation within the bloc. India’s government also opposes the linking of climate action with trade policies.
According to a source close to the negotiations, discussions regarding CBAM and broader sustainability issues were ongoing as of Friday afternoon, October 10, 2025.
Christophe Kiener, the EU’s Chief Negotiator, acknowledged on September 25 that the EU would need to tailor its approach on trade and sustainable development to be “something India can live with,” although a dedicated chapter on this topic would still be essential. He noted that while the 13th round in New Delhi saw no major breakthroughs, it significantly enhanced mutual understanding. Kiener added that “things are bound to be difficult” as negotiations near their conclusion.
From the EU’s perspective, India’s Quality Control Orders (QCOs) are frequently cited as a point of contention.
India’s Ambassador to Brussels, Saurabh Kumar, maintains an optimistic outlook on the ongoing trade talks.
“It is not a single point or one particular aspect that has overarching weight. Trade negotiations by definition are not easy and there are difficulties, but both sides are committed to it (the FTA) and determined to complete it,” Mr. Kumar shared with The Hindu on Friday, October 10, 2025. He emphasized, “There is a strong political directive to complete discussions by December.”
Minister Goyal is anticipated to visit Brussels later this month.
IMEC ‘Sherpa’ Meeting Advances Regional Connectivity Talks
Beyond trade, Brussels has also been a hub for other significant discussions this week. The Global Gateway Forum, the EU’s strategy for international investment, took place alongside a ‘Sherpa’ steering meeting for the India Middle East Europe Economic Corridor (IMEC). India’s Deputy NSA Pavan Kapoor participated in this meeting virtually.
With a potential ceasefire between Israel and Gaza offering hope for reduced conflict, Brussels is eager to advance the IMEC project, first announced at the G20 Summit in New Delhi in September 2023. This ambitious corridor aims to establish vital transport, fiber optic, and energy routes connecting India to Europe, transiting through West Asia.
The EU official highlighted the enthusiasm for the project, stating, “We are very keen on it, and the Indians are very keen on it, as are others. And we have these various investments we’re making to support legs of it. The key thing is the Middle East being sorted out.” They also stressed the continued importance of “the oomph of the Americans as well” in this endeavor.
When questioned about any specific obstacles to operationalizing the IMEC project, Ambassador Kumar clarified that participating countries are currently defining their respective responsibilities. “There is no limiting factor. The countries involved are trying to organize themselves as to how they are to move ahead and who looks after which aspect,” he explained.