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Informist, Thursday, Jun. 5, 2025

 

NEW DELHI – Commerce and Trade Minister Piyush Goyal on Thursday sought Italy's support in taking forward the "mutually beneficial" India-European Union free trade agreement which will "open the doors for greater opportunity for businesses" of both countries. "I can assure all of you present here that we are making rapid progress," Goyal said, speaking at the India-Italy Business Forum. "We had discussions as recently as two days ago in Paris where we engaged on finding the pathway for taking forward a very vibrant free trade agreement," he said.

 

India is looking to expedite the conclusion of negotiations with the EU by signing the trade deal in tranches. The two sides had resumed discussions in 2023 after a gap of nine years. The trade talks, which initially began in 2007, were later suspended due to differences over market access. "We are committed to beat the expectations of our leaders and are trying to do it much faster than the end of year," Goyal said at the India-Italy joint press briefing.

 

INDIA-EU FTA

According to Goyal, active, extensive discussions are currently on to finalise a "well-balanced, fair, and equitable" free trade agreement between the EU and India, which will open up large opportunities for both sides. "It will recognise the potential areas of cooperation, make trade easier, help to reduce regulatory overburden, help to reduce non-tariff barriers on both sides," he said.

 

Non-tariff barrier has been a primary hurdle in New Delhi's negotiation with Brussels, due to EU's Carbon Border Adjustment Mechanism, popularly called carbon tax or CBAM. Under the CBAM, those exporting goods to the EU have to report the carbon content of the commodity, which will determine the tax on it. The carbon tax collection is expected to begin in 2026. The levy will hamper the profitability of Indian exporters, as Europe is among the top export destinations for the country. India's total trade with the EU was $137.41 billion in 2023-24 (Apr-Mar), with imports at $61.48 billion and exports at $75.93 billion. 

 

Goyal is on an official visit to Italy. He co-chaired the 22nd session of the India-Italy Joint Commission for Economic Cooperation with Antonio Tajani, deputy prime minister and minister of foreign affairs and international cooperation of Italy. 

 

INDIA-ITALY TIES

Goyal said he was "very impressed" with Tajani's vision to expand Italy's exports to $700 billion and in this endeavour, India could contribute significantly considering the "comparative advantages" that each enjoy in different areas. He noted that India-Italy, with low bilateral trade, do "not even meet even a minuscule portion of the huge potential" between the nations.

 

India's total exports to Italy registered a 12?ll in 2024-25 (Apr-Mar), totalling at $7.73 billion, while imports grew 4% to $6.03 billion. "We have miles to go. We have a lot of work to do. Whether it is trade, whether it is investment, whether it is technology, whether it is tourism, there is tremendous potential between our two countries," the minister said.

 

While India and Italy have not yet set a number as a target for bilateral trade, Goyal said the countries are "clearly working at a $14 billion-$15 billion of bilateral trade." "Our focus is now to see India EU FTA gives opportunities to both sides," he said. "Once the EU-India FTA gets formalised, we will be able identify more precisely what could be the areas which can drive growth for both countries."

 

He also said that India and Italy plan to revitalise the working group on agriculture and food processing and the two sides will also soon convene the next joint working group on renewable energy. "We have agreed to work together on Industry 4.0 to promote manufacturing, to promote a bridge between the startups of Italy and India, to expand our collaborations in technology between the business of two countries for co-production, co-design, co-development," Goyal said. "We have agreed in principle to establish join working groups in the space and automobile sectors," he added.

 

The minister also made a proposition to the Italian government and industry, that he would be "happy" to set-up an "Italian Enclave" in India which will be dedicated for Italian businesses. It will have all social infrastructure suited for Italian engineers or management who will come to India including hotel chains, Michelin star restaurants, health and education suited to the Italian system. "We wish to create a home."

 

INDIA-MIDDLE-EAST-EUROPE-ECONOMIC-CORRIDOR

On the India-Middle East-Europe Economic Corridor, Goyal said that the countries are still in the stage of firming up how the economic corridor will pan out. Leaders are still evaluating which will be the most appropriate routes, or which will be the countries that will support it the most through finance, he said. There will be huge benefit of connectivity, logistics, transport, reduction of shipping pollution, among others, he added.

 

The commerce minister also added that Indian officials are looking forward to welcoming the first meeting of the India-Middle East-Europe Economic Corridor's in the near future, which will be held in India. "We will follow it up with continuing discussions in a fast-track basis with a visit to Italy and thereafter hoping to take this to the very next level," he said.

 

The India-Middle East-Europe Economic Corridor was launched at the G20 Leaders' Summit in New Delhi in September 2023, with an aim to accelerate economic growth by enhancing connectivity and trade across regions.  End

 

US$1 = INR 85.79

 

Reported by Priyasmita Dutta

With inputs from Shubham Rana

Edited by Ashish Shirke

 

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