India, EU discuss FTA implementation in Brussels

India and the European Union (EU) have discussed preparations for implementing their Free Trade Agreement (FTA), along with measures to improve market access, simplify customs procedures and strengthen supply chain cooperation during high-level meetings in Brussels.

Commerce Secretary Rajesh Agrawal held meetings with senior European Commission officials, including Ditte Juul Jørgensen, Director-General of the Directorate-General for Trade and Economic Security; Koen Doens, Director-General of the Directorate-General for International Partnerships; and Gerassimos Thomas, Director-General of the Directorate-General for Taxation and Customs Union.

In a separate meeting with Thomas, discussions focused on customs cooperation, trade facilitation and preparations for implementing the India-EU FTA. Both sides highlighted the importance of efficient, transparent and digitally enabled customs procedures to reduce transaction costs for businesses and ensure the smooth movement of goods.

The agreement is currently undergoing legal scrubbing and verification ahead of its proposed signing in mid-December 2026. Its full ratification and entry into force are targeted for mid-2027.

The agreement is expected to provide wider market access for businesses on both sides. Under the proposed arrangement, tariffs will be eliminated on over 99% of Indian exports to the EU, benefiting labour-intensive sectors such as textiles, leather and jewellery.

India will also reduce duties on over 96% of European goods, including a phased reduction in automobile tariffs to 10% under an annual quota of 250,000 units.

Apart from trade negotiations, Agrawal also met representatives of the diamond industry associated with the Antwerp diamond ecosystem. Discussions covered the global diamond value chain, certification and traceability requirements, responsible sourcing and opportunities arising from India's growing diamond market and manufacturing ecosystem.

India and Belgium have identified gems and jewellery as an important area for deeper cooperation, with Antwerp, Mumbai and Surat recognised as major diamond centres.

The Commerce Secretary also participated in a BusinessEurope roundtable with European industry representatives, where he discussed opportunities to strengthen trade and investment ties, improve market access and enhance supply chain resilience.

Agrawal highlighted India's economic growth, reform momentum and investment opportunities across key sectors, while inviting European businesses to deepen their engagement with India and participate in its expanding value chains.

India and the European Union bilateral merchandise trade stands at approximately $136.54 billion (₹11.5 lakh crore) in 2024-25. India's exports to the EU during the period stand at around $75.85 billion (₹ 6.4 lakh crore).

Overall bilateral trade between India and the EU stands at nearly $140 billion, having doubled over the past decade. This highlights the growing economic significance of the partnership and the potential for further expansion following the implementation of the FTA. - ANI