BRUSSELS – Optimism is high among Indian and European Union officials who are confident that a crucial trade agreement will be finalized by the close of this year. This sentiment comes as the 14th round of intense negotiations wrapped up in Brussels on Friday, October 10, 2025.
An unnamed EU official, speaking to a prominent Indian daily on Thursday, October 9, 2025, echoed this optimism, stating, “I can’t imagine a scenario where we haven’t either neared completion or fully concluded the Free Trade Agreement by year-end.”
Rajesh Agrawal, who recently took over as Commerce Secretary on October 1 after previously heading negotiations with the U.S., was present in Brussels this week, leaving on Friday evening. Sources indicate that Darpan Jain from the Commerce Ministry will now spearhead India’s discussions with the U.S., though Mr. Agrawal will maintain a significant advisory role in those ongoing talks.
The Indian negotiating delegation, led by L. Satya Srinivas, is set to leave Brussels on Saturday, October 11, 2025. While the next formal round of discussions is anticipated in New Delhi in November, active dialogue will persist in the interim period.
In 2024, bilateral trade in goods reached a substantial €120 billion ($139 billion). However, both parties acknowledge persistent challenges, citing issues related to both tariff and non-tariff barriers. Key sticking points have included sectors such as services, agriculture, dairy, pharmaceuticals, automobiles, and alcoholic beverages. To facilitate progress, negotiators have strategically opted to defer discussions on the most sensitive topics.
Despite a strong political directive from Prime Minister Narendra Modi and European Commission President Ursula von der Leyen in February to finalize an agreement by the end of 2025, difficult subjects like ‘trade and sustainable development’ continue to pose challenges.
India has consistently voiced its concerns regarding the EU’s Carbon Border Adjustment Mechanism (CBAM). This mechanism, designed to impose a levy on carbon emissions from imported goods, is slated for full implementation on January 1, following a two-year preparatory phase.
India’s Commerce and Industry Minister, Piyush Goyal, has made it clear that India would take retaliatory measures should its exports face the CBAM. In a late September speech in New York, Minister Goyal cautioned that the CBAM ‘trap’ might lead to European isolation and inflationary pressures. Furthermore, the Indian government has expressed dissatisfaction with intertwining climate policy with trade negotiations.
According to a source closely involved in the negotiations, discussions surrounding CBAM and broader sustainability concerns were still actively underway on Friday afternoon, October 10, 2025.
On September 25, Chief Negotiator Christophe Kiener informed the European Parliament’s trade committee that the EU would need to adapt its stance on trade and sustainable development to achieve an outcome ‘India can live with,’ although a dedicated chapter on this topic remains essential. Kiener acknowledged that the 13th round in New Delhi hadn’t seen significant breakthroughs but had fostered a better mutual understanding. He also noted that ‘things are bound to be difficult’ as negotiations approach their final stages.
From the EU’s perspective, India’s Quality Control Orders (QCOs) frequently emerge as a point of contention.
India’s Ambassador to Brussels, Saurabh Kumar, maintains an optimistic outlook on the ongoing trade discussions.
Speaking to a prominent Indian daily on Friday, October 10, 2025, Ambassador Kumar stated, “No single point or particular aspect carries overwhelming weight. Trade negotiations are inherently complex, and challenges exist, but both sides are fully committed and determined to finalize the Free Trade Agreement.” He further emphasized, “There’s a clear political mandate to conclude these discussions by December.”
Minister Goyal is anticipated to visit Brussels later this month.
IMEC ‘Sherpa’ Meeting Held
Brussels experienced a busy week extending beyond trade talks. It hosted the Global Gateway Forum, the EU’s investment strategy for other regions, and a steering committee meeting for the India Middle East Europe Economic Corridor (IMEC). India was represented virtually by Deputy NSA Pavan Kapoor.
Amidst a ceasefire between Israel and Gaza, and hopes for a de-escalation of conflict, Brussels is showing renewed enthusiasm for the IMEC project. This ambitious corridor, initially unveiled at the G20 Summit in New Delhi in September 2023, is envisioned to establish crucial transport, fiber optic, and energy links between India and Europe, traversing West Asia.
The unnamed EU official emphasized, “We, along with India and other partners, are highly invested in this project. We are making various investments to support its different components. The crucial factor, however, is achieving stability in the Middle East.” They also highlighted the continued importance of Washington’s engagement.
The official candidly added, “We also need the strong backing of the Americans.”
When questioned about any specific hurdles to operationalizing the IMEC project, Ambassador Kumar clarified that participating nations are currently defining their respective responsibilities.
He explained, “There isn’t a single limiting factor. The involved countries are in the process of organizing themselves to determine the path forward and allocate responsibilities for each aspect of the project.”