At the India-EU summit in July, the two sides agreed on the establishment of the high-level mechanism. The EU Trade Commissioner raised the issue with the Indian side and discussions are underway on a quick meeting of the mechanism, said the Joint Secretary (Europa West), Sandeep Chakravorty of the Ministry of Foreign Affairs. Given Luxembourg`s role as a founding member of the EU, Modi and Bettel also discussed the draft trade and investment agreement with European states. They also discussed cooperation on issues of effective and reformed multilateralism, terrorism and climate change, Chakravorty said. The fate of the India-EU Trade and Investment Agreement, which aims to further open bilateral markets to goods, investment and services, could be balanced, with India and the EU closing the horns on integrating labour standards into the pact. Relations between the Republic of India and the European Union are currently established by the 1994 EU-India Cooperation Agreement. The EU is an important trading partner of India and both sides have been trying to negotiate a free trade agreement since 2007.  In the 2018/19 financial year, bilateral trade between the EU (excluding services) amounted to $104.3 billion.  The two sides have signed three agreements: an agreement between the India International Exchange and the Luxembourg Stock Exchange on cooperation in the financial services sector and green finance, a protocol between the State Bank of India and the Luxembourg Stock Exchange and a protocol between Invest India and Luxinnovation to promote and facilitate foreign direct investment. However, as a result of the video conference, there was no discussion about the timing of a free trade agreement that has been under discussion for several years.
Since 2007, India and the EU have established a comprehensive trade and investment agreement (BTIA), but India`s trade regime and regulatory environment remain relatively restrictive. Seven rounds of negotiations have been concluded without reaching a free trade agreement Discussions on a bilateral eu-India bilateral trade and investment agreement have stalled due to the absence of differences on issues such as the level of direct resources and market access, generic drug production, greenhouse gas emissions, civil nuclear energy, agricultural subsidies, financial sector regulation and safeguards, cooperation on tax evasion. , foreign funding of NGOs in India, trade controls, restrictions on technology transfer and cooperation in the event of an embargo (Russia).  The EU is India`s largest trading partner, accounting for 11.1% of India`s total trade, on an equal footing with the United States and ahead of China (10.7%). We are confident that free trade agreements with the EU and the UNITED States will benefit India and that talks will resume,” said Gopal Krishna Agarwal, national spokesman for the Bharatiya Janata Party for Economic Affairs.