New Delhi
India and the European Union (EU) are working to finalise a major trade deal within the next three months, aiming to resolve key issues involving agriculture, sustainability, and market access, according to a report on Sunday.
The renewed urgency in talks has been driven by US President Donald Trump’s tariff offensive, which has pushed both sides to strengthen trade ties. The deal is seen as crucial in reshaping global commerce and providing the EU with stability against global market uncertainties.
For India, the agreement would mark a strategic milestone, reflecting its growing confidence after a decade of economic reforms and expansion. The report noted that New Delhi’s push for the pact represents an effort to shape the global trade order rather than simply adapt to it.
India’s rapidly expanding manufacturing sector, strong digital economy, and robust domestic demand have made it an attractive hub for European companies seeking alternatives to China. Europe, meanwhile, sees India as a vital partner in its diversification strategy, especially as it reduces dependence on Russia and China.
However, disagreements remain over the EU’s Carbon Border Adjustment Mechanism (CBAM), which India argues unfairly penalises developing nations for historical emissions. Commerce Minister Piyush Goyal has described the clause as inequitable.
If completed, the deal could mark India’s emergence as a key force in global trade rule-making. If delayed, it would underscore the complex realities of negotiation between two major economic powers.
The coming months are likely to determine the shape of one of the decade’s most significant trade partnerships.