New Delhi, Feb 28 (PTI) India and the European Union (EU) on Friday discussed the progress of negotiations on the proposed free trade agreement (FTA), aimed at boosting two-way commerce and investments.

The agreement was discussed during a meeting between Commerce and industry Minister Piyush Goyal and European Commissioner for Trade and Economic Security Maros Sefcovic here.

"Had a candid and insightful discussion with EU Trade Commissioner @MarosSefcovic over breakfast today on the India-EU FTA and the progress of the Trade and Technology Council. Exciting times ahead as we work towards elevating our trade and investment ties to the next level as trusted partners," Goyal said in a post on X.

Sefcovic is accompanying European Commission President Ursula von der Leyen, who is here on an official visit with the EU College of Commissioners or senior political leaders of the bloc.

The meeting assumes significance as the senior officials of the two sides are scheduled to hold the tenth round of negotiations for the FTA from March 10-14 in Brussels.

In January this year, Goyal was in Brussels to meet the European Commissioner for Trade to take stock of the progress of the talks.

Further strengthening of economic ties between the two is crucial in light of the threat from US President Donald Trump to impose higher tariffs.

In the current uncertain global economic situation, India is the fastest growing major economy. It is projected to grow at 6.4 per cent in 2024-25.

In the ninth round, India and the EU discussed trade issues covering goods, services, investment and government procurement along with necessary rules such as rules of origin, SPS (sanitary and phytosanitary), and technical barriers to trade.

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.

Besides demanding significant duty cuts in automobiles, 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, will become more competitive, if the pact gets concluded successfully.

India is also seeking data security status for the IT sector. The lack of this status has prevented the flow of sensitive information to India, a big deal for its IT industry.

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).

A GI is primarily an agricultural, natural or manufactured product (handicrafts and industrial goods) originating from a definite geographical territory. Typically, such a name conveys an assurance of quality and distinctiveness, which is essentially attributable to the place of its origin.

According to the economic think tank GTRI, In FY24, the EU exported USD 416 million worth of wine to India. Its automobile and auto parts exports exceeded USD 2 billion, including USD 416 million in fully built-up (CBU) vehicles.

Most EU car exports to India come in completely knocked-down (CKD) form, attracting a 15 per cent tariff for local assembly and sale. Such EU exports to India, including auto components, totalled over USD 1.4 billion, it said.

EU's investments in India are valued at over USD 117 billion with around 6,000 European companies present in India. India's investments in the EU are valued at around USD 40 billion. PTI RR DRR