India and EU Near Landmark Free Trade Agreement

India and the EU are on the cusp of finalizing a significant free trade agreement, with announcement expected at the India–EU Summit. This trade pact aims to enhance market access, diversify supply chains, and boost Indian textile and jewellery exports affected by U.S. tariffs. Parliamentary approval remains a hurdle.

India and the European Union are close to finalizing a pivotal free trade agreement, anticipated to be announced during the India–EU Summit in New Delhi. The deal, once ratified by the European Parliament, aims to expand bilateral trade and lift Indian exports impacted by the U.S. tariffs since August.

Key components of the agreement include investment protection and geographical indications being negotiated separately, narrowing its focus to goods, services, and trade rules. India's push for market access reflects its response to increasing global protectionism, while the EU seeks to diversify supply chains away from China.

Agricultural and dairy products are excluded from the agreement, and India is resisting the EU's push to eliminate tariffs on more than 95% of goods. The success of this pact hinges on addressing issues like carbon levies, services mobility, and non-tariff barriers.

(With inputs from agencies.)