Hopeful to sign trade pact with EU soon: Goyal

New Delhi, Oct 1 (PTI) Commerce and Industry Minister Piyush Goyal on Wednesday expressed hope that India and 27-nation bloc European Union (EU) will sign a free trade agreement soon.

The pact is aimed at boosting two-way commerce and investments.

"We will soon, hopefully sign (free trade agreement) with the EU," he said here at the India-EFTA Business Summit.

India and four nation EFTA have announced implementation of a trade pact from October 1.

An Indian official team is visiting Brussels for the trade talks this month. Goyal is also expected to meet EU Trade Commissioner Maros Sefcovic in South Africa.

Sefcovic and the European Commission's Agriculture Commissioner Christophe Hansen were here last month to review the progress of talks with Goyal.

Both sides have targeted to conclude negotiations by December.

In June 2022, India and the 27-nation EU bloc resumed negotiations for a comprehensive FTA, an investment protection agreement and a pact on geographical indications after a gap of over eight years. It stalled in 2013 due to differences on the level of opening up of the markets.

On February 28, Modi and the European Commission president agreed to seal a much-awaited free trade deal by the end of this year.

Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in products like wine, spirits, meat, poultry, and a strong intellectual property regime.

Indian goods' exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact is concluded successfully.

The India-EU trade pact negotiations cover 23 policy areas or chapters, including trade in goods, trade in services, investment, sanitary and phytosanitary measures, technical barriers to trade, trade remedies, rules of origin, customs and trade facilitation, competition, trade defence, government procurement, dispute settlement, intellectual property rights, geographical indications, and sustainable development.

India's bilateral trade in goods with the EU was USD 136.53 billion in 2024-25 (exports worth USD 75.85 billion and imports worth USD 60.68 billion), making it the largest trading partner for goods.

The EU market accounts for about 17 per cent of India's total exports, while the EU's exports to India make up 9 per cent of its total overseas shipments.

In addition, the bilateral trade in services, in 2023, between India and the EU was estimated at USD 51.45 billion. PTI RR TRB