India-EU trade pact may take effect early 2025, Goyal indicates

India's Commerce Minister Piyush Goyal has signalled that the long-negotiated India-EU free trade agreement may enter into force in the January-March quarter of 2025, contingent on formal signing by the close of 2026. The bilateral pact, under discussion for several years, represents a significant effort to deepen economic ties between Asia's largest economy and the European bloc.

While welcoming progress in negotiations, Goyal cautioned that India faces headwinds from Europe's regulatory framework and tariff regime. The minister highlighted concerns that stringent compliance standards and customs duties could constrain the expansion of bilateral trade under the new agreement, potentially limiting benefits for Indian exporters across key sectors.

The FTA is expected to cover goods, services, and investments, offering both sides preferential market access. For India, the pact holds particular significance for sectors including pharmaceuticals, automobiles, and agricultural products. European exporters stand to gain improved access to India's growing consumer market, though negotiations have centred on bridging divergent regulatory approaches and tariff schedules.

The timeline outlined by Goyal suggests that administrative and parliamentary procedures for ratification would need to advance swiftly to meet the early 2025 implementation window. Both nations have previously expressed commitment to concluding negotiations, though several technical issues remain under discussion. The pact would mark India's most ambitious trade agreement with a major developed economy grouping.