India-EU Free Trade Pact Set to Reshape Economic Ties

India and the European Union are on the verge of finalizing a free trade agreement, which is expected to lower tariffs on European cars and wines and expand Indian markets for electronics and textiles. The deal aims to boost trade amidst rising global tensions and tariff barriers.

India and the European Union are poised to announce the conclusion of their long-standing negotiations for a free trade agreement, according to sources from both governments. This pact aims to reduce tariffs on European automobiles and wine while expanding Indian markets for electronics, textiles, and chemicals.

This development is likely to follow Indian Prime Minister Narendra Modi's meetings with European Council President Antonio Costa and European Commission President Ursula von der Leyen. If finalized and ratified by the European Parliament, the agreement could significantly boost exports from India, especially in textiles and jewelry, according to officials involved in the negotiations.

The potential agreement comes amid heightened trade tensions, marked by the U.S. increasing tariffs on Indian imports. The EU, having recently signed trade pacts with Mercosur, Indonesia, Mexico, and Switzerland, reflects a global trend to secure trade alliances outside U.S. influence. Key issues remain around non-tariff barriers, but the promise of duty-free access to the European market holds potential gains for Indian industries.

(With inputs from agencies.)