Will India and the EU Seal the Free Trade Deal This Month?

India-EU Free Trade Agreement on the Horizon

New Delhi: A significant development is on the horizon as India and the European Union are poised to potentially finalize their free trade agreement this month. This milestone could coincide with the visit of top EU officials to New Delhi, where they will also be the distinguished guests at the Republic Day parade on January 26.

Commerce Secretary Rajesh Agrawal informed reporters that the negotiators from both sides are nearing the completion of the trade agreement, aiming to resolve the remaining details ahead of the leadership meeting set for January 27, following the Republic Day celebrations.

Agrawal noted that 20 out of the 24 chapters of the India-EU FTA have been completed, with ongoing discussions addressing the few outstanding issues.

European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen are scheduled to visit India from January 25 to 27, invited by Prime Minister Narendra Modi. They will also participate in the 77th Republic Day festivities on January 26 and attend the India-EU Summit the following day.

During a recent visit to India, German Chancellor Friedrich Merz expressed optimism that the India-EU trade agreement could be signed by the end of January. He emphasized Germany's strong support for the deal, urging both the EU and India to expedite the process to stabilize supply chains disrupted over the past year.

Commerce Minister Piyush Goyal highlighted the trade discussions with the EU in Brussels as a significant achievement for his Ministry. He stated, "I had a fruitful dialogue with the European Union Trade and Economic Security Commissioner, Mr. Maros Sefcovic, in Brussels. We engaged in comprehensive discussions on critical aspects of the proposed India-EU FTA, stressing the importance of reaching a fair and ambitious agreement that reflects our shared values and economic goals."

Additionally, Goyal mentioned his recent visit to Liechtenstein, where he reviewed the implementation of the India–EFTA Trade and Economic Partnership Agreement with senior political leaders.