India and EU Close to Historic Trade Agreement
India and the European Union are close to finalising a long-pending free trade agreement, according to European Commission President Ursula von der Leyen. Speaking on the sidelines of the World Economic Forum in Davos, she said negotiations have reached an advanced stage and described the proposed pact as a historic milestone in India–EU economic relations.
Talks Near Final Stage
Trade negotiations between India and the EU were revived in 2022 after a prolonged pause. Since then, both sides have worked through complex issues related to tariffs, market access, standards, and services. Officials indicate that only a limited number of issues remain unresolved, with efforts underway to close the gaps soon.
Why the Deal Matters
Once concluded and ratified, the agreement would link two of the world’s largest markets, covering nearly two billion people. It is expected to expand trade in goods and services, improve investment flows, and provide Indian exporters greater access to European markets while offering EU firms deeper entry into India’s growing economy.
Strategic Context
The push for the agreement comes amid shifting global trade dynamics and a shared interest in diversifying supply chains and strengthening economic partnerships.
