The much-delayed India-EU Free Trade Agreement for opening up trade, investment and services is likely to be signed by December as bilateral negotiations have been put on the fast track, Commerce and Industry Minister Anand Sharma said today.
"We will have a final ministerial wrap-up at Brussels in November. Right now, talks between the EU Director General and Indian Commerce Secretary are going on in New Delhi," Sharma told reporters here.
He is heading India's high-level delegation of industry to Germany steered by the Federation of Indian Chambers of Commerce and Industry of India (Ficci).
Sharma said while he was hopeful the India-EU bilateral agreement would be signed in December, at least an 'in-principle' pact would be inked, even if a complete trade deal is not done.
The officials of the two sides are trying hard to iron out their differences in certain areas. While he did not elaborate on the differences, FICCI President Rajan Bharati Mittal alluded to non-trade issues, which are sought to be brought into the agreement.
These issues include environment and labour standards.
However, Sharma was optimistic about resolving the differences, with at least three meetings lined up in New Delhi and Brussels (EU headquarters) in the next few months.
India had started negotiations with its largest trading partner in June, 2007, which were to conclude by the end of 2008. However, differences on the inclusion of items, which Indian negotiators described as non-trade issues, bogged down the talks.
India and the EU had bilateral merchandise trade worth $75 billion in the 2009-10 fiscal.
Earlier, addressing the Dusseldorf Chamber of Industry and Commerce, FICCI chief said India-Germany bilateral trade, which stood at around 13 billion euros, can easily reach the target of 20 billion euros in 2012 if the FTA with the 27-nation bloc is concluded expeditiously.
Germany is the largest member of the EU.
Sharma, who is working hard to reach the FTA with the European Union, said he was confident about reaching the 20 billion euro target before 2012.
"I can say with confidence that we will achieve the target and go beyond," he said.