New Delhi, May 1 (PTI) India and the European Union (EU) are working towards a commercially meaningful trade agreement that would open up markets for goods and services to each other's businesses.

Commerce and Industry Minister Piyush Goyal is in Brussels to discuss progress of the the proposed free trade agreement between India and the 27-nation bloc.

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"Glad to host Minister - and my friend - @PiyushGoyal. In today's uncertain times, our businesses are looking for opportunity, access, predictability. And that's exactly what we're working to deliver: a commercially meaningful deal, opening up markets for goods and services," European Commissioner for Trade and Economic Security Maros Sefcovic said in a post on X.

In reply, Goyal said: "The mutual benefit of our peoples and businesses will be central to our efforts."

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The Indian minister's visit assumes significance as the two sides are examining a possibility of negotiating their free trade agreement in phases amidst an uncertain global trade environment.

India has earlier followed the practice of negotiating such trade pacts in two phases with Australia. New Delhi and Washington have also planned to do a trade pact in two phases.

Negotiating the FTA in two phases allows both sides to first conclude areas where agreement can be reached more easily. Complex issues can be dealt with at a later stage.

So far, India and the EU have completed ten rounds of negotiations for the proposed agreement. The next round of talks are scheduled from May 12 here.

In June 2022, India and the 27-nation EU bloc resumed the negotiations after a gap of over eight years. It stalled in 2013 due to differences over the level of opening up of the markets.

On February 28, Prime Minister Narendra Modi and the European Commission President agreed to seal a much-awaited free trade deal by the end of this year.

The India-EU trade pact negotiations cover 23 policy areas or chapters including Trade in Goods, Trade in Services, Investment, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Remedies, Rules of Origin, Customs and Trade Facilitation, Competition, Trade Defence, Government Procurement, Dispute Settlement, Intellectual Property Rights, Geographical Indications, and Sustainable Development.

Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in wines, spirits and a strong intellectual property regime.

Indian goods' exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive, if the pact gets concluded successfully.

India's bilateral trade in goods with the EU was USD 137.41 billion in 2023-24 (exports USD 75.92 billion, imports USD 61.48 billion), making it the largest trading partner of India for goods.

The EU market accounts for about 17 per cent of India's total exports, while the EU's exports to India make up 9 per cent of its total exports.

In addition, the bilateral trade in services, in 2023, between India and the EU was estimated at USD 51.45 billion.

The agreement is aimed at further boosting bilateral trade and investments between the two. The two sides are negotiating a free trade agreement, an investment protection agreement and an agreement on geographical indications (GIs).

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)