**Summary:**
In response to Lok Sabha Unstarred Question No. 414, addressed on July 22, 2025, the Ministry of Commerce and Industry provides an update on Free Trade Agreement (FTA) negotiations with the European Union (EU), the United Kingdom (UK), and the United States of America (USA).
Negotiations for the India-UK Free Trade Agreement (FTA) were successfully concluded in May 2025. This comprehensive agreement focuses on deep economic integration through trade liberalization and tariff concessions. It is anticipated that over 99% of Indian exports will benefit from tariff liberalization, particularly in labor-intensive sectors like textiles, leather, gems and jewellery, engineering goods, auto parts, and chemicals. The FTA also aims to bolster services exports in sectors such as IT/ITeS, financial services, professional services, other business services, and educational services. The agreement is projected to benefit Indian farmers, fishermen, workers, MSMEs, startups, and innovators.
Negotiations for the India-European Union (EU) Free Trade Agreement (FTA), which commenced in June 2022, are ongoing. Twelve rounds of negotiations have been held, with the most recent round taking place in Brussels from July 7-11, 2025.
Bilateral Trade Agreement negotiations between India and the United States (US) were launched in March 2025. Five rounds of negotiations have been conducted, with the last round held in Washington from July 14-18, 2025.
Key Entities Referenced
European Union: A political and economic alliance of European countries engaged in Free Trade Agreement negotiations with India.
United Kingdom: A country that has successfully concluded Free Trade Agreement negotiations with India.
United States of America: A country engaged in Bilateral Trade Agreement negotiations with India.
Free Trade Agreement: An agreement between two or more countries to reduce or eliminate barriers to trade and investment.
India-UK Free Trade Agreement: A trade agreement between India and the United Kingdom, successfully concluded in May 2025.
Jitin Prasada: The Minister of State in the Ministry of Commerce and Industry who answered the question in Lok Sabha.
Brussels: City in Belgium, the location of the latest round of India-European Union Free Trade Agreement negotiations.
Washington: City in District of Columbia, USA, the location of the latest round of India-US Bilateral Trade Agreement negotiations.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
(DEPARTMENT OF COMMERCE)
LOK SABHA
UNSTARRED QUESTION NO. 414
ANSWERED ON 22.07.2025`
Discussion with EU, UK and US for Free Trade Agreement
414. DR. THIRUMAAVALAVAN THOLKAPPIYAN:
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य और उद्योग मंत्री) be
pleased to state:
(a) whether the Government had any discussion with the European Union (EU),
United Kingdom (UK) and United States of America (USA) relating to Free Trade
Agreement;
(b) if so, the details thereof;
(c) whether any agreement reached with any of these countries; and
(d) if so, the details thereof along with the quantum of benefit reaped or expected to
be reaped by India?
ANSWER
वाणिज्य और उद्योग मंत्रालय में राज्य मंत्री (श्री जिजिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI JITIN PRASADA)
(a) to (d): India-UK Free Trade Agreement (FTA) negotiations have been successfully
concluded in May 2025. Negotiations for the FTA with the EU and Bilateral Trade
Agreement with the USA are ongoing.
The India-UK Free Trade Agreement is a modern and comprehensive agreement
aimed at deep economic integration through trade liberalization and tariff concessions.
More than 99% of Indian exports are expected to benefit from tariff liberalization under
the FTA including improved export opportunities in labour-intensive sectors such as
textiles, leather, gems and jewellery, engineering goods, auto parts, and chemicals.
The FTA will also support services exports due to commitments across trade in
services such as IT/ITeS, financial services, professional services, other business
services and educational services. This Agreement will benefit Indian farmers,
fishermen, workers, MSMEs, startups and innovators.
India-European Union (EU) Free Trade Agreement (FTA) negotiations commenced in
June 2022. Twelve rounds of negotiations have been held till recently, the last being
from 7-11 July, 2025 at Brussels.
India US bilateral Trade Agreement negotiations were launched in March 2025. Five
rounds of negotiations have been held, the last being from July 14-18th 2025 at
Washington.
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