In brief
India's Commerce Secretary Rajesh Agarwal has confirmed that the European Union and India are finalizing a historic trade agreement, expected to enhance ties amidst increasing geopolitical pressures from the US. The announcement will take place during the visit of European leaders, who underline the importance of international cooperation over rising protectionism. The agreement aims to ease market access for both sides, potentially impacting global trade dynamics significantly.
The European Union and India are set to announce a landmark trade deal after nearly two decades of on-off talks, as both sides aim to deepen ties amid tensions with the US.
India's Commerce Secretary Rajesh Agarwal said on Monday that negotiations had been wrapped up and the deal finalised.
European Commission President Ursula von der Leyen and European Council President António Costa are in Delhi, where the announcement is expected.
Both India and the EU are seeking to strengthen strategic and trade ties with the rest of the world as they contend with economic and geopolitical pressure from the US.
Delhi is grappling with 50% tariffs imposed by President Donald Trump last year amid ongoing talks aimed at securing a trade deal between India and the US that continues to stall.
The EU has recently faced tensions with the Trump administration, adding urgency to formalizing the India-EU trade agreement. Costa emphasized that the deal would signify a commitment to trade agreements over protectionist measures.
On January 27, the leaders will meet with Indian Prime Minister Modi to finalize details during a bilateral summit, aiming to officially announce the deal soon after. The formal signing is projected for later this year, contingent on approval by the European Parliament and Council.
The deal is set to increase market access for Indian goods entering Europe while facilitating easier entry for European products, such as automobiles and beverages, to India's robust economy.
Notably, this agreement is projected to cover a substantial part of global trade and enhance existing ties that already make the EU India’s largest trading partner. Since the talks began in 2007, both regions have expressed a mutual interest in overcoming previous regulatory hurdles to enhance bilateral trade.
