India, EU likely to conclude trade talks Tuesday, paving way for tariff cuts

Trending:WEF 2026ICC vs BCBResponsible Nations IndexNew Gaza projectTikTok dealBorder 2 reviewIndia, EU likely to conclude trade talks Tuesday, paving way for tariff cutsFP News Desk • January 23, 2026, 20:14:45 ISTWhatsapp Facebook TwitterThe proposed deal would lower tariffs on European cars and wine while opening up new markets for Indian electronics, textiles, and chemicalsAdvertisementSubscribe Join Us+ Follow us On GoogleChoose Firstpost on GoogleEuropean Commission President Ursula von der Leyen and Prime Minister Narendra Modi arrive for a photo opportunity ahead of their meeting at the Hyderabad House in New Delhi, India, on February 28, 2025. Reuters FileIndia and the European Union are expected to announce the conclusion of long-running negotiations for a free trade agreement (FTA) on Tuesday, according to a Reuters report, citing two government sources from India and the EU. The proposed deal would lower tariffs on European cars and wine while opening up new markets for Indian electronics, textiles, and chemicals. The announcement could come following Prime Minister Narendra Modi’s meeting with European Council President Antonio Costa and European Commission President Ursula von der Leyen, who are set to co-chair the India-EU summit in India from January 25 to 28, Reuters quoted one Indian official as saying. STORY CONTINUES BELOW THIS ADAn EU official added that the bloc aims to “conclude negotiations on the free trade agreement” during the summit, after which both sides will follow internal procedures to formally sign the pact. More from World India and EU expected to announce conclusion of trade talks on Tuesday How India’s EU trade deal could reshape global alignmentsIn addition to the FTA, India and the EU are expected to sign a security and defence agreement — Europe’s third in Asia after deals with South Korea and Japan — as well as a mobility agreement covering high-skilled workers and students, the official said. Trade boost loomsIf finalised and ratified by the European Parliament — a process that could take at least a year — the India-EU free trade agreement is expected to boost Indian exports such as textiles and jewellery, Indian official told Reuters. Negotiations were relaunched in 2022 after a nine-year pause and gained momentum last year amid rising global trade tensions. In August, former US President Donald Trump doubled tariffs on Indian imports to as much as 50%, among the highest globally, highlighting the growing need for alternative trade partnerships. Quick ReadsView AllOver 5,000 killed in Iran protests, activists say many more would have died during internet blackoutIndia launches 'Responsible Nations Index' to rank countries beyond GDP and powerSpeaking at the World Economic Forum in Davos on Tuesday, European Commission President Ursula von der Leyen said the EU was close to concluding the agreement but noted that additional work remains. The potential pact follows recent EU agreements with the South American bloc Mercosur and other trade deals. India has also signed agreements with the UK, New Zealand, and Oman, reflecting a broader global effort to diversify trade partnerships and hedge against US tariff threats and geopolitical pressures. STORY CONTINUES BELOW THIS ADBilateral trade between India and the EU reached $136.5 billion in the 2024/25 fiscal year ending in March, making the 27-nation bloc one of India’s largest trading partners.“Negotiators are still trying to bridge differences on several sensitive issues, including India’s reluctance to sharply cut tariffs on auto imports,” Reuters quoted an EU government source as saying. Lowering car import taxes would allow automakers such as Volkswagen and Renault to expand in India by making imported models more competitive.