India-EU FTA: Negotiations near completion ahead of January 27 summit; EU leaders to attend Republic Day

India and the European Union are pushing to conclude negotiations on their long-pending Free Trade Agreement (FTA) ahead of the high-profile India-EU Summit scheduled for January 27, Commerce Secretary Rajesh Agrawal said on Thursday.

At the invitation of Prime Minister Narendra Modi, the President of the European Council, António Luís Santos da Costa, and the President of the European Commission, Ursula von der Leyen, will be on a State Visit to India from January 25 to 27, 2026, as Chief Guests at the 77th Republic Day celebrations. During the visit, the two leaders will also co-chair the 16th India-EU Summit on January 27.

Majority of FTA chapters closed

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Providing an update on the negotiations, Agrawal said substantial progress has already been made. “We have closed 20 out of 24 chapters completely, there are few issues which are still ongoing negotiations, which we are virtually engaged on a day to day basis, and we are trying to see if we can meet the timeline before our leaders can meet,” the commerce secretary said.

He added that negotiators from both sides are in constant touch to bridge the remaining gaps. “We are expecting to conclude the negotiations and have the deal ready,” Agrawal said, noting that the Foreign Secretary had also spoken about the timeline earlier this week in Ahmedabad.

However, he struck a note of caution, saying, “We can only make efforts. As I told you, coming near is not good enough.”

Also Read: India-EU FTA: Talks on, negotiators working to converge on different parts

High-level engagements in Brussels boost momentum

The renewed momentum follows Union Minister of Commerce and Industry Piyush Goyal’s two-day visit to Brussels from January 8 to 9. During the visit, Goyal held extensive discussions with EU Commissioner for Trade and Economic Security Maros Sefcovic, offering political guidance to negotiators to resolve pending issues and accelerate the deal. The ministerial dialogue took place following the technical-level discussions between the Commerce Secretary Rajesh Agrawal and the Director-General for Trade of the European Commission Sabine Weyand on January 6 and 7 aimed at reviewing the progress made in different negotiation areas and reducing the differences in the outstanding issues.

The two parties confirmed that there was steady development in the main topics such as the accessibility of the market for products, origin rules, and services. The discussions at the ministerial level strengthened the common political will to finish a fair, balanced, and ambitious agreement which is consistent with the rules-based global trading system. India and the EU have been strategic partners since 2004. While the 15th India-EU Summit was held virtually in July 2020, ties have expanded significantly, particularly after the historic visit of the EU College of Commissioners to India in February 2025.

The participation of EU leaders as Chief Guests at Republic Day celebrations, along with the upcoming summit, is expected to further strengthen the India-EU partnership and boost cooperation in areas such as trade, investment, technology, and sustainability. FTA negotiations, which had come to a standstill in 2013 due to different views on the extent of the deal, were reopened in 2022. Although the leaders had the signing of the agreement by the end of 2025 as their goal, negotiations have been in progress until early 2026.

Also Read: Piyush Goyal concludes Brussels visit, advances India-EU FTA talks

FAQs

Q1. Why is India-EU FTA important?

A: The India-EU FTA is important because it will make trading goods and services between India and the EU easier and faster, and it will also make the relationship between the two economies stronger.

Q2. What issues are still unresolved?

A: A few chapters related to market access, regulatory standards, and services remain under negotiation.

Q3. When do leaders plan to conclude the deal?

A: The two parties are negotiating in the hope of getting the talks done and dusted before the India-EU Summit on January 27, but no official confirmation has been given so far.

Q4. What were the reasons for the previous FTA negotiations to come to a halt?

A: The talks were stopped in 2013 because of disagreement over the level of ambition, the range of the agreement, and the expectations from it.

Q5. Which industries are to gain significantly from India-EU FTA?

A: The sectors of manufacturing, pharmaceuticals, textiles, automotive components, IT and professional services, renewable energy, and agri-processed products are the main ones that will benefit the most from the EU-India FTA due to more accessible markets and lowered trade barriers on both sides.