India-EU FTA On the Brink of Conclusion Amid Critical Talks

India and the EU are nearing the conclusion of a free trade agreement (FTA) after resolving key issues. Remaining topics include the EU's carbon tax. The deal is expected to be announced during upcoming state visits. Discussions center around tariff modifications and trade facilitation.

India and the European Union are on the cusp of finalizing a significant free trade agreement, as negotiations hit the homestretch. Key issues, such as the EU's carbon tax, are still under discussion, but both sides aim to reach an agreement before top EU leaders visit India later this month.

Commerce Secretary Rajesh Agrwal confirmed that 20 out of 24 negotiation chapters have been completed, with high-stakes discussions continuing on unresolved matters. Agriculture-related topics remain excluded from the treaty. The announcement could coincide with the 16th India-EU Summit, which European Council President Antonio Costa and European Commission President Ursula von der Leyen will attend.

Both parties are negotiating hard: India seeks zero-duty access for its textiles sector, while the EU is pushing for reduced tariffs on automobiles, medical devices, and other products. After a nine-year hiatus, talks resumed in June 2022, aiming to cover a comprehensive range of trade and investment topics.

(With inputs from agencies.)