India and EU on Brink of Historic Trade Deal Amid Global Economic Shifts

India is nearing a historic trade agreement with the European Union, poised to mark New Delhi's largest deal to date. As both sides seek to conclude talks by this month, the agreement promises to bolster economic ties, expand market access, and reshape global trade amid growing protectionism.

India is poised to finalize a monumental trade agreement with the European Union this month, according to Trade Secretary Rajesh Agrawal. The deal holds the potential to fortify economic relations and reduce dependency on major powers such as China and Russia.

Negotiations have advanced to an optimistic phase, with principal discussions centering on car tariffs and steel exports, topics that remain challenging. The EU seeks significant tariff reductions on automobiles, while India is concerned about the EU's carbon border levy impacting its steel products. Both parties are aiming for a breakthrough as EU leaders visit New Delhi later in January.

Steered by strategic interests, the pact aims to open India's consumer market to European goods and expand mutual trade and investment opportunities, notably in digital services and green technologies. While agricultural sectors remain safeguarded, talks continue on various industry fronts, alongside ensuring adherence to environmental and labor international standards.

(With inputs from agencies.)