**Summary:**
In response to Lok Sabha Unstarred Question No. 3685, addressed on August 12, 2025, the Ministry of Commerce and Industry provided updates on India's Free Trade Agreement (FTA) negotiations with the European Union (EU), the Bilateral Investment Treaty (BIT) negotiations with the United States (US), the review of India's existing FTA with ASEAN, and the potential impact of US tariffs on Indian exports.
India and the EU relaunched FTA negotiations in June 2022, with the 12th round of negotiations held in Brussels from July 7-11, 2025. Discussions are ongoing, focusing on economic partnership, market access, and rules-based cooperation, aiming for a fair and mutually beneficial FTA.
India-US BIT negotiations commenced in March 2025, with five rounds completed, the most recent held in Washington, USA, from July 14-18, 2025.
India and ASEAN are engaged in reviewing the ASEAN-India Trade in Goods Agreement (AITIGA), signed in 2009. Nine meetings of the AITIGA Joint Committee have been held.
The impact of US tariffs on Indian exports of steel, auto, and related sectors will vary based on comparative tariffs on competitor countries. The Department of Commerce is working with stakeholders to mitigate potential adverse effects through export promotion and diversification strategies.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe, engaged in Free Trade Agreement negotiations with India.
Free Trade Agreement: A trade agreement between two or more countries to reduce or eliminate barriers to trade, specifically between India and the European Union.
SHRI SHYAMKUMAR DAULAT BARVE: A member of Lok Sabha, who raised a question regarding the Free Trade Agreement with the European Union.
United States: Country engaged in Bilateral Investment Treaty negotiations with India and imposing tariffs on steel, auto and related sectors.
ASEAN: Association of Southeast Asian Nations, with which India has an existing free trade agreement (AITIGA) under review.
SHRI JITIN PRASADA: The Minister of State in the Ministry of Commerce and Industry, who provided the answer to the Lok Sabha question.
Brussels: City in Belgium, location of the 12th round of negotiations between India and the European Union regarding the Free Trade Agreement.
Washington, USA: The city and country where the last round of IndiaUS BTA negotiations was held.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 3685
ANSWERED ON 12/08/2025
FREE TRADE AGREEMENT WITH EUROPEAN UNION
3685. SHRI SHYAMKUMAR DAULAT BARVE
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased
to state:
(a) whether the Government completed the 12th round of negotiations on the proposed
free trade agreement with the European Union;
(b) if so, the major areas where agreement has been reached so far and the issues over
which differences still persist;
(c) whether the negotiations on the proposed bilateral investment treaty with the US are
likely to be completed by the stipulated time, if so, the progress made so far in this
regard;
(d) whether the review process of India's existing free trade agreement with ASEAN has
been satisfactory, if so, the number of rounds of talks held so far and the issues on
which consensus has been reached; and
(e) whether the Indian exporters are likely to be adversely affected by the imposition of
25- 50% tariffs by the US on steel, auto and related sectors, if so, the steps being
taken to mitigate these impacts?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a)&(b) India and the European Union (EU) re-launched the Free Trade Agreement (FTA)
negotiations in June 2022. The 12th round of negotiations was held in Brussels from July 7-
11th, 2025. The discussions are progressing across multiple tracks aimed at fostering
economic partnership, enhancing market access, and reinforcing rules-based cooperation.
The process continues to be aimed at concluding a fair, balanced and mutually beneficial
FTA.
(c) India-US BTA negotiations were launched in March 2025 and five rounds of negotiations
have been held, the last being from July 14-18th 2025 at Washington, USA.
(d) India and ASEAN are constructively engaged on review of ASEAN-India Trade in Goods
Agreement (AITIGA), signed in 2009 and so far, 9 meetings of AITIGA Joint Committee
meetings have been held.
(e) The impact of US tariffs on exports to US in various sectors will depend and vary based
on comparative tariffs on other countries including the competitors. The Department of
Commerce is engaged with stakeholders to help reduce the impact through export promotion
and diversification measures.
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