India and the European Union (EU) resumed negotiations on a Free Trade Agreement (FTA) in 2022, aiming to strengthen their economic and strategic alliances. This study examines the influence of domestic interest groups in India on the India–EU FTA negotiations, using Robert Putnam’s two-level game literature to analyse their trade policy preferences. The study focuses on specific cases from the automobile and dairy sectors to highlight sector-specific interest groups. The findings reveal that influential and well-organized interest groups within the automobile sector are pressurizing the government to oppose trade liberalization efforts. Similarly, although unorganized and dispersed, the sheer size of domestic interest groups in the dairy sector, coupled with their electoral influence, empowers them to pressurize trade policymakers against liberalizing the dairy sector in the India–EU FTA negotiations.