Union Commerce Minister Piyush Goyal said on Friday that concrete steps are needed to remove existing trade barriers for speeding up the talks and reach a free trade agreement (FTA) between India and the European Union (EU).

The minister highlighted that both sides need a deeper understanding of the barriers holding back the agreement as there is tremendous potential to grow from the current bilateral trade level of $15 billion.

"I believe concrete steps need to be taken to expedite the conclusion of the FTA between India and EU. That will require both EU, its member-states and India to work in a spirit of cooperation to develop a mutual trust and deeper understanding of the trade barriers which are holding back the trade agreement between us," Goyal said in his address at the ‘Italy-India Business, Science and Technology Forum’ here.

The minister also emphasised the need for encouraging investments between India and Italy and enabling businesses to trade with each other without roadblocks, Goyal added.

Prime Minister Narendra Modi and President of the European Commission Ursula von der Leyen have agreed to expedite the conclusion of the India-EU FTA by the end of the year, at a meeting held in Delhi last month.

The EU President’s visit came in the backdrop of tariff hikes proposed against all countries by US President Donald Trump (now paused till July 9 except for China) under his ‘America First’ policy which is threatening to disrupt global trade and heightened uncertainty in the global economy.

PM Modi and the European Commission President committed to task their respective negotiating teams to pursue negotiations for a balanced, ambitious, and mutually beneficial FTA.

Officials were asked to work as trusted partners to enhance market access and remove trade barriers. They were also tasked to advance negotiations on an Agreement on Investment Protection and an Agreement on Geographical Indications. The EU is India’s largest trading partner, accounting for 124 billion pounds of trade in goods in 2023, or 12.2 per cent of total Indian trade.