India and the EU are engaging in crucial discussions in New Delhi to address unresolved issues related to agriculture, dairy, and regulatory barriers, intending to finalise a trade agreement by the end of the year.
The negotiations take place as India seeks to strengthen its global partnerships following recent U.S. tariff increases linked to its Russian oil imports.
Since their 2022 restart, India-EU trade talks have sped up due to U.S. tariff pressures. The EU is expanding its trade by finalising deals with Mexico and Mercosur and enhancing talks with India, Indonesia, and the UAE.
As geopolitical dynamics shift, a trade deal with the EU could boost India’s West ties. An Indian official said talks are on track after a call between Prime Minister Modi and EU Commission President Ursula von der Leyen, both committed to finalising the deal this year.
11 out of 23 negotiation chapters have been concluded so far, covering areas such as customs, digital economy, intellectual property, subsidies, and enforcement mechanisms.
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India is committed to protecting its farm and dairy sectors as the EU seeks broader access to India’s auto and liquor markets. Negotiations are tense over origin rules, regulations, and EU worries about India’s quality control as trade hurdles. Officials did not comment due to negotiation sensitivity.
