India–EU FTA talks to spill into 2026, next round set for early January

.

Negotiations on the long-pending India–European Union (EU) free trade agreement (FTA) are now expected to continue into early 2026, missing the earlier target of concluding the deal by the end of 2025.

Commerce and Industry Minister Piyush Goyal said on Thursday that the next round of talks between Indian officials and EU Trade Commissioner Maroš Šefčovič is scheduled for the first or second week of January, with ministerial-level engagement planned around January 8–9 to advance discussions.

Goyal described the latest discussions, held during Šefčovič’s visit to New Delhi, as “very substantive,” but emphasised that the final agreement must be fully balanced and mutually beneficial. “There’s been significant progress, but everything is dependent on crossing the finishing line. It has to be a 100 percent agreement, a win-win for both sides, a balanced agreement which ensures equal and relatively good future for trade and investment on both sides,” he said during a joint press briefing by India and Italy in Mumbai.

The minister added that while many areas are still under discussion, no issue currently appears to be a divergence. “There will obviously be many areas of discussion, but I don’t think there’s any such issue which I would call a divergence. These are ongoing discussions and negotiations,” Goyal said. He also highlighted the importance of protecting key sensitivities while seizing “low-hanging fruits” that can deliver early benefits for businesses and consumers on both sides.

Italy’s Deputy Prime Minister and Foreign Minister Antonio Tajani said he hopes the FTA could be concluded in the first six months of 2026, though he clarified that he is not directly responsible for trade negotiations. “I want to be optimistic… maybe the FTA can be concluded by the first six months of next year. But I am not the trade commissioner and not the right person to comment on this,” Tajani said.

Tajani also underscored Italy’s interest in the deal, pointing to the Indian market’s potential for Italian exports. “It’s also in our interest, Italian interest, to sign the agreement, because the Indian market is very important for us. For example, wine should be very important for us,” he added.

The India–EU FTA, revived in 2022 after nearly a decade-long pause, is expected to be one of the most consequential trade pacts for both sides, given the scale of their economies and the long-term opportunities for investment and trade.

India-Italy Map Out Wider Economic Cooperation

India and Italy on Thursday outlined a broader economic partnership across technology, innovation, startups, deep tech, manufacturing, defence and aerospace. with Union minister Goyal saying both sides see significant untapped potential.

The two governments discussed setting up a startup bridge to enable closer collaboration between innovators and entrepreneurs.

Goyal also welcomed Italian luxury brand Prada’s collaboration with Kolhapuri chappal manufacturers, saying it could help take the traditional product to global markets.

"India and Italy share longstanding cultural ties that are now being complemented by deeper business engagement. The partnership will be guided by the Joint Strategic Plan 2025–2029, aimed at boosting investments, technology collaboration and trade," Goyal said.

Goyal highlighted four priority sectors identified by both sides—automobiles, including electric vehicles; waste-to-energy and renewable energy; technology and textiles; and agri-food and agri-tech. Co-design and co-manufacturing in EVs, technology transfers and high-precision engineering tie-ups are among the areas expected to see traction.