India-EU trade talks at critical stage amid hurdles, officials tell parliamentary panel

Negotiations for a Free Trade Agreement (FTA) between India and the European Union (EU) are at an advanced but complex stage, with discussions covering issues such as stringent standards, protectionist regulatory measures, and non-tariff barriers restricting India's agricultural and industrial exports, top officials told a parliamentary panel.In return, the EU is seeking greater certainty in sectors including financial services, shipping, and the marine industry, the panel was informed.Senior officials from the Ministry of External Affairs and the Commerce Ministry briefed the Parliamentary Standing Committee on External Affairs, chaired by Congress leader Shashi Tharoor, on Wednesday - a day ahead of fresh negotiations with EU representatives.India is pushing for duty-free access for its exports to the EU market, tariff reductions, simpler procedures, fewer non-tariff barriers, and easier compliance with standards, the officials said. Services such as information technology, healthcare, and financial services are another priority, with negotiations focusing on smoother movement of professionals, recognition of qualifications, and easier digital delivery of services.According to people aware of the discussions, the sticking points remain stringent standards, protectionist regulations, recognition of Indian professional qualifications, and non-tariff barriers hampering agricultural and industrial exports. Officials also flagged the EU's Carbon Border Adjustment Mechanism, deforestation regulation, foreign subsidies rules and other measures that could increase regulatory costs and limit market access for Indian exporters. These issues have already been raised with EU counterparts at multiple platforms, they noted.While expressing optimism that a deal with the EU could be concluded soon, the officials added that the India-EFTA (European Free Trade Association) Trade and Economic Partnership Agreement (TEPA) - covering Switzerland, Norway, Iceland, and Liechtenstein - is expected to come into force from October 1, 2025. After the meeting, Tharoor said 21 members attended the session, calling it "informative," and added that officials gave comprehensive replies. He expressed hope that India would soon sign a trade agreement with the EU.