Commerce and Industry Minister Piyush Goyal on Friday emphasised on understanding and respecting mutual sensitivities to fast-track India-EU free trade agreement talks, and said there would be no pact if the European Union insists on opening the dairy sector.

Speaking at the Asia-Pacific Conference of German Business, the minister also said that "extraneous" issues like labour and climate change should be discussed at international forums.

He added that the two sides have to understand, listen and appreciate the sensitivities of each other.

"You (EU) are 27 countries, who have different priorities; India has 27 states. I may be growing apples in one state which does not permit me to open apples," he said, adding that the per capita income of EU member countries is much higher than that of the Indian states.

He also said that there is a need to focus the energies on trade and on promoting investments and deeper strategic partnerships to push the talks.

It will have to be a political decision and the negotiations cannot be left to the bureaucracy alone, the minister said.

"If we respect (these) things, the FTA can be done very honourably, admirably, and fast," Goyal said.

"First the sensitivities between the 27-countries of the EU and my 27 states collectively as the Union of India... If we respect each other's sensitivities like with UAE, Australia and EFTA, we respected each other's sensitivities and not encroach on issues which can hurt. For example dairy, I just cannot open up dairy. If the EU insists that I open up dairy, there is no FTA," he added.

Australia did its first FTA without dairy with India as they respected India's issues.