Why Piyush Goyal’s Brussels Visit Could Finally Unlock the India–EU Trade Deal After 19 Years

Piyush Goyal and EU Trade Commissioner Maroš Šefčovič during bilateral talks in Brussels on 8–9 January 2026

After years of stalled negotiations, the India–EU Free Trade Agreement has re-entered the spotlight, propelled by renewed political resolve and high-level diplomatic engagement.

That renewed urgency was on full display during Union Minister of Commerce and Industry Piyush Goyal’s two-day visit to Brussels on 8–9 January 2026. In meetings with the European Union’s Commissioner for Trade and Economic Security, Maroš Šefčovič, the message was unmistakable: the long-pending India–EU FTA must now move from deliberation to delivery.

This was not just another diplomatic courtesy call. It was a signal that both sides believe the moment for hesitation has passed. The visit injected fresh political energy into negotiations that have stretched across two decades, false starts included.

A Diplomatic Push Years in the Making

The Brussels meetings capped a week of intense diplomatic and technical engagement. Ahead of the ministerial dialogue, Commerce Secretary Rajesh Agrawal and EU Director-General for Trade Sabine Weyand met on 6–7 January to take stock of progress across negotiating tracks.

Their task was not glamorous, but it was essential. They worked to narrow divergences, clarify unresolved provisions, and prepare the ground for political decision-making. Trade agreements, after all, are built as much in conference rooms as they are announced from podiums.

At the ministerial level, discussions covered market access for goods, rules of origin, and services, among other areas. Both sides reaffirmed their commitment to a fair, balanced, ambitious, and modern agreement, aligned with democratic values and a rules-based global trading system.

Yet this renewed momentum must be understood against the backdrop of an earlier breakdown in negotiations.

From High Ambition to Long Hiatus

India and the European Union formally launched FTA negotiations in 2007, driven by optimism about growing trade and complementary strengths. The vision was expansive: freer movement of goods and services, deeper investment ties, and stronger regulatory cooperation.

That vision faltered by 2013. Sharp differences over tariffs, market access, regulatory standards, and sensitive sectors such as agriculture and automobiles proved difficult to bridge. Talks stalled, then quietly froze, even as bilateral trade continued to grow.

For nearly a decade after 2013, India–EU trade talks remained frozen despite growing trade volumes. It took direct political intervention and sustained ministerial engagement, culminating in high-level visits like the January 2026 Brussels dialogue, to revive momentum.

The world had changed in the interim, as supply chains fractured during the pandemic and geopolitical fault lines hardened. Dependence on a narrow set of trading partners began to look risky rather than efficient.

Why the FTA Returned in 2022

Against this backdrop, negotiations were re-launched on 17 June 2022. The relaunch was not a simple rewind. It came with expanded ambition, including parallel talks on an Investment Protection Agreement and a Geographical Indications agreement.

Since then, multiple negotiation rounds have unfolded, covering over 20 policy areas ranging from goods and services to intellectual property, competition, dispute settlement, and sustainable development. Progress has been steady, though uneven.

Yet, political intent alone cannot bridge the technical complexities embedded in modern trade agreements. Some of the most difficult chapters are also the least visible to the public. Rules of origin, regulatory alignment, and data norms rarely make headlines, but they decide whether businesses can actually use an agreement once it is signed.

Where the Deal Still Sticks

Several issues remain unresolved, and they go to the heart of domestic political economy on both sides. The European Union is pushing for deeper tariff cuts on automobiles, wines, spirits, dairy products, and medical devices. India, wary of sudden exposure in sensitive sectors, has resisted sweeping concessions.

India, in turn, seeks improved access for textiles, leather, pharmaceuticals, chemicals, and engineering goods, which are areas where it holds a strong comparative advantage but faces tariff and non-tariff barriers in Europe.

Unlike Bangladesh and Vietnam, both beneficiaries of preferential access to the EU, Indian textile exporters pay higher tariffs when entering European markets. As a result, Indian garment exporters have repeatedly flagged order diversions to competing countries, despite comparable quality and capacity.

Non-tariff barriers complicate matters further. Differences persist over safety standards, environmental regulations, including the EU’s Carbon Border Adjustment Mechanism, and data protection rules.

Agriculture remains particularly sensitive. India continues to prioritise safeguards for farmers and MSMEs, resisting full liberalisation that could disrupt livelihoods.

Trade Numbers, Real Lives

Behind these negotiations lies a relationship of remarkable scale. The EU is India’s largest trading partner in goods, with bilateral trade touching USD 136–137 billion in 2024–25. Services trade and investment flows have expanded steadily.

Over 6,000 European companies operate in India, many for decades. German engineering firms, French energy companies, and Dutch logistics players are not merely exporters but employ large Indian workforces, invest in local supply chains, and participate in India’s manufacturing ecosystem.

Indian pharmaceutical firms supply life-saving generic medicines to several EU countries, especially in oncology, cardiology, and infectious diseases. During the COVID-19 period and its aftermath, Indian generic drugs quietly became staples in European hospitals, underscoring how regulatory alignment and trade facilitation are not abstract goals but matters of public health and affordability.

Trade policy, in this sense, is not about distant balance sheets. It shapes hospital shelves, factory floors, and household incomes.

Two Markets, One Strategic Equation

For the European Union, India represents scale and growth at a time when domestic demand is under strain. A market of over 1.4 billion people offers opportunities for automobiles, machinery, chemicals, medical devices, and high-value manufactured goods.

India is also central to Europe’s search for resilient supply chains and trusted partners. Diversification has become a strategic necessity, not a slogan.

For India, the EU is a premium export destination. It absorbs Indian pharmaceuticals, textiles, IT services, engineering goods, chemicals, and leather products, while also bringing in capital, technology, and skills.

Darjeeling tea, one of India’s first registered Geographical Indications, has long enjoyed recognition in Europe. Yet Indian producers still face challenges from imitation products and weak enforcement. Stronger GI protection under the FTA could mean real income security for producers, not just brand prestige.

Beyond Tariffs: A Geopolitical Undertone

The relevance of the FTA extends well beyond commerce into the realm of strategic geopolitics.

In an era of fractured multilateralism and weaponised trade, India and the EU are both pluralistic democracies and see value in anchoring their partnership within a rules-based trading framework.

The agreement aligns with India’s broader economic strategy, complementing initiatives such as Make in India and Atmanirbhar Bharat, while supporting integration into global value chains. For the EU, it reinforces engagement with the Indo-Pacific without reducing relationships to security alone.

The challenge now lies in translating political momentum into a balanced agreement that reconciles ambition with domestic sensitivities. This final stretch will demand compromise, creativity, and patience, which are qualities often in short supply as deadlines loom.

A Deal That Could Set the Tone

If concluded, the India–EU FTA will not merely lower tariffs or simplify customs procedures. It will signal how major economies can cooperate amid uncertainty, without retreating into protectionism.

In a world searching for stability in trade governance, the India–EU FTA could emerge as a template for cooperative economic leadership.

Piyush Goyal’s Brussels visit may not have signed the agreement, but it has unmistakably shifted the centre of gravity. After years in cold storage, the deal is no longer asking whether it should happen, but only how soon, and on what terms.