New Delhi: Union Finance Minister Nirmala Sitharaman met European Commission’s Executive Vice-President Valdis Dombrovskis and discussed bilateral and financial issues of mutual interest on Saturday.

In a meeting that was held in New Delhi, both the leaders exchanged views on ongoing consultations for India-EU Investment Protection Agreement IPA and India-EU Free Trade Agreement FTA, informed the Ministry of Finance.

EU Trade Commissioner also co-chaired the EU-India High-Level Dialogue on Trade and Investment with Union Commerce Minister Piyush Goyal in Delhi on Saturday.

The negotiations for an FTA between the EU and India were relaunched last year, marking a significant step in trade relations.

Prior to the meeting with the Union Finance minister, In a press conference, the EU Executive Vice-President Valdis Dombrovskis acknowledged that while progress has been made in the Free Trade Agreement (FTA) discussions, there are still substantial challenges to address.

He said, “The discussions on the Free Trade Agreement between India and the European Union (EU) have made “progress but a lot of work is still ahead of us”, said on Saturday, adding that the ties between the two sides have a lot of untapped potential”.

At a press conference held in India, Dombrovskis emphasized the untapped potential in the relationship between India and the EU, stating, "India and the EU are important partners. We share fundamental values and interests." He also highlighted that the EU is India's second-largest partner.

Dombrovskis noted that the FTA negotiations come at a time of conflicting geopolitical situations, emphasizing the increasing importance of trust and credibility in international relations.

Providing an update on the FTA talks, Dombrovskis, who also serves as the EU Commissioner for Trade, stated that both sides have engaged in intensive discussions.

He highlighted the potential benefits of an FTA, such as providing preferred access for India to the EU market, which is the largest single market globally.

Dombrovskis arrived in India earlier in the week and participated in the G20 Trade and Investment Ministers Meeting in Jaipur.

The negotiations for an FTA between the EU and India were relaunched last year, marking a significant step in trade relations.

FTA aims to eliminate trade barriers between participating countries, facilitating smoother import and export processes and fostering stronger trade relations.

Talks initially began in 2007 but were frozen in 2013. The decision to resume negotiations in 2021 reflects the shared commitment to deepen economic ties and promote free and hassle-free trade between the two major partners.

The negotiations encompass a wide range of areas, including sustainability, labour standards, and environmental considerations, to ensure that trade benefits both parties without adverse impacts on the environment or labour rights.