India-EU Trade Deal: Navigating Complex Negotiations

India and the European Union are making efforts to finalize a long-pending trade agreement, with ongoing discussions aimed at resolving key issues. Despite significant political will, disagreements persist on matters like tariffs and market access, impacting the timeline for concluding this strategic trade pact.

India and the European Union are accelerating efforts to finalize a protracted trade deal, aiming for a swift resolution despite a looming year-end deadline that might be missed. Recent talks signal both parties' intent to bridge gaps, although significant divergences remain.

Following a meeting between Indian Commerce Minister Piyush Goyal and an EU delegation led by European Commissioner Maros Sefcovic, the momentum to conclude the pact persists, yet unresolved issues linger. Previously reinforced by Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, the negotiations have not yet met the targeted timeline due to key differences.

While the potential for enhancing India-EU trade relations exists, covering 120 billion euros in 2024 alone, points of contention include tariff reductions, market access, and regulatory harmonization. The areas of steel, automobiles, and carbon levies particularly demand more consensual dialogue, amid parallel talks on investment protection and geographical indications.

(With inputs from agencies.)