On the day India and the United Kingdom concluded a Free Trade Agreement (FTA), Finance Minister Nirmala Sitharaman expressed optimism about finalizing a similar pact with the European Union by the end of 2025. Speaking at the ‘ADB Governors Seminar: Cross Border Collaboration for Future Resilience’ in Milan, Italy, Sitharaman said that discussions with the EU have progressed well, with only “one or two items” of contention remaining.

She emphasized the need for flexibility on both sides to resolve the outstanding issues, noting that negotiations require "the art of making it possible." Sitharaman urged negotiators to show elasticity and move beyond fixed positions to make the agreement achievable.

Highlighting the importance of the EU, she said it remains a top priority for India due to the strong traditional ties between the two regions. She added that if talks continue in a cooperative spirit, meeting the December deadline is “not impossible.”

Sitharaman also underlined the importance of upholding the principles of free trade, stressing that efficiency should not come at the cost of violating its core tenets.