India and EU Edge Closer to Ambitious Free Trade Pact

India and the EU are set to resume negotiations for a free trade agreement, aiming to finalize the deal by year's end despite challenges like high agricultural tariffs and auto duties. Both sides seek a balanced pact, potentially boosting significant bilateral trade currently surpassing USD 190 billion.

India and the European Union (EU) are on the verge of resuming negotiations over a free trade agreement, with talks scheduled for March 10-14 in Brussels. The goal is to resolve outstanding issues and finalize the deal by the end of the year, in a climate pressured by potential U.S. tariff hikes.

The two sides, during discussions with EU Commissioner for Trade and Economic Security Maros Sefcovic, noted the necessity for a balanced trade arrangement. Key sticking points include India's agricultural tariffs, automobile duties, and regulatory barriers. Notably, services trade and data security, essential for mobility under the EU's GDPR, remain contested areas.

A successful agreement could significantly elevate India-EU trade, exceeding USD 190 billion. However, challenges persist, particularly in agriculture and auto sectors, where the EU seeks major tariff reductions. The complex EU tariff system and India's protective stance for its domestic industry pose additional hurdles.