* EU: Child labour needs to be addressed
* Doha deal in "heavy waters"
* G20 leaders should give leeway to negotiators (Adds quotes, details throughout)
By Matthias Williams
NEW DELHI, March 4 (Reuters) - The European Union is aiming for an October signing of a free trade agreement (FTA) with India, trade chief Karel de Gucht said on Thursday, which could open up new export opportunities worth $9 billion for India.
As a bloc, the 27-nation EU is India's largest trading partner and the two have been negotiating an FTA since 2007.
But talks have snagged over differences about market access, procurement and the EU's efforts to link trade with issues such as child labour.
"We share the view ... Our aim should be that this deal is done by the next summit meeting between the European Union and India which is due to take place in October," de Gucht told reporters in the Indian capital.
"This will mean that we will speed up the negotiations, so the negotiators have some busy weeks and months before them."
India has in the past emphasised that what New Delhi sees as extraneous issues, such as child labour or India's environmental performance, be kept off the table in free trade discussions with the EU that have gone through eight rounds so far.
De Gucht said India needed to address the issue of child labour, though he did not see the topic as a "deal-breaker".
"We have told our Indian counterpart repeatedly in the past that this is a topic that has to be addressed," he said, when asked if issues such as child labour were still key to the talks.
"European parliament will never agree, I think, to a deal that would remain silent on these topics," he added.
Trade between India and the EU currently stands at 78 billion euros ($107 billion), but is still less than one-fifth the value of the EU's trade with China.
De Gucht wrote in the Economic Times daily on Thursday that a free trade deal could create new export opportunities worth $9 billion for Indian industries.
DOHA'S HEAVY WATERS
De Gucht said he hoped for a conclusion of the Doha round of global trade talks by the year-end and the Group of 20 (G20) major economies ought to give their negotiators the flexibility to achieve this goal which they have endorsed.
But he has said the talks may spill over into 2011.
"At this moment in time, the Doha negotiations are in heavy waters," he said. "If the G20 leaders are tasking us to come to a deal, then there should also be the necessary margin of maneuvering, negotiation margin, to come to a deal."
The Doha talks were launched in the Qatari capital in late 2001 to free up world trade and help poor countries by opening up markets and cutting tariffs and subsidies in rich countries.
The 153-nation talks collapsed in 2008 over a dispute between the United States and Europe, and India and China, on protection for farmers in rich economies and shields for industrial goods coming from developing nations.
Many political leaders say concluding the talks would provide a much needed boost to the global economy.
Against the backdrop of slow progress on Doha, both the EU and India have pushed ahead with negotiating and signing several bilateral trade deals in recent years.
After a visit from De Gucht, Singapore on Wednesday announced it would start free trade talks with the EU, also its largest trading partner. ($1=0.73 euros) (Editing by Bill Tarrant)