EU Race to Seal Landmark FTA; 20 of 24 Chapters Finalized as Summit Approaches

India and the European Union (EU) have entered a "day-to-day" negotiating sprint to finalize their ambitious Free Trade Agreement (FTA) before the high-profile India-EU Summit scheduled for January 27. Commerce Secretary Rajesh Agrawal revealed today that as many as 20 out of 24 chapters of the pact have been officially closed, marking a historic breakthrough in a trade dialogue that has spanned nearly two decades.

Speaking at a media briefing in the national capital, Secretary Agrawal confirmed that negotiators from both sides are virtually engaged on a near-constant basis to bridge the final gaps. The upcoming visit of European Commission President Ursula von der Leyen and European Council President António Costa, who will also be the Chief Guests at India's Republic Day Parade on January 26, is being viewed as the ultimate deadline for a "deal-ready" announcement.

"We are virtually engaged on a day-to-day basis. We have closed 20 out of 24 chapters completely," Agrawal stated, while adding a cautious note that "coming near is not good enough" until all contentious issues are resolved.

Strategic Shield 

The urgency to conclude the FTA has intensified in 2026 as India navigates a volatile global trade landscape. With a fresh wave of tariffs impacting exports to the US and a record trade deficit with China, the EU deal represents a vital "economic shield." The EU is currently India’s second-largest trading partner, with bilateral goods trade reaching €120 billion in 2024.

Earlier this week, Foreign Secretary Vikram Misri and German Chancellor Friedrich Merz also reiterated their support for the deal, noting that a finalized FTA would act as a massive catalyst for the "Make in India" initiative, particularly in integrating Indian MSMEs into European supply chains.

-Witn inputs from ANI

Also read: India Defies Headwinds with $38.5Bn Dec Shipments; Trade Deficit at $25B