India and the European Union on Friday agreed to conclude a free trade deal by the end of the year, their first commitment to a deadline on talks that have been going for years, as they look to soften the effect of tariff increases from the United States.
The announcement was made by European Commission President Ursula von der Leyen, on a two-day visit to India, and Indian Prime Minister Narendra Modi at a joint press conference.
Both sides have for years been trying to strike a free trade pact, which would involve major concessions by India - one of the world's most protected markets.
Talks for an India-EU free trade deal resumed in 2021 after having been stalled for eight years.
"We have prepared a blueprint for collaboration in the areas of trade, technology, investment, innovation, green growth, security, skilling and mobility," Modi said, adding officials have been asked to conclude the deal by the end of the year.
The EU is India's largest trading partner in goods, with two-way trade growing about 90% over a decade to stand at $137.5 billion in the 2023/24 fiscal year.
Von der Leyen called for an "ambitious" trade and investment deal that could cover industries from batteries and pharmaceuticals to semiconductors, clean hydrogen and defence.
The visit by von der Leyen, accompanied by leaders of EU nations, comes at a time of rising geopolitical tension and as U.S. President Donald Trump has threatened to impose reciprocal tariffs on all nations, including the EU and India, by April.
"We both stand to lose from a world of spheres of influence and isolationism, and we both stand to gain from a world of cooperation and working together," she said, ahead of talks with Modi. "But I believe this modern version of great-power competition is also an opportunity for Europe, and India, to reimagine its partnership."
DEAL WILL NOT BE EASY
The deal had been delayed for many years by New Delhi's reluctance to lower tariffs in some areas, while the European Union proved reluctant in easing visa curbs on Indian professionals.
The EU wants India to lower tariffs of more than 100% on imported cars, whiskey and wine, while India seeks greater access for its cheaper drugs and chemicals in the EU market.
India also wants lower tariffs on its exports of textiles, garments and leather products. It also opposes an EU proposal to fix tariffs of 20% to 35% from January 2026 on high-carbon goods, including steel, aluminium and cement.
"It won't be easy to conclude the free trade talks unless India agrees to drastically cut tariffs on automobiles and other products that could hit domestic industry," said Ajay Srivastava, of Delhi think-tank Global Trade Initiative.
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Senior Russian officials have condemned the United States’ recent military strikes on Iran, warning of a spiralling regional conflict and accusing U.S. President Donald Trump of igniting a "new war" that could backfire by strengthening Iran's leadership.
The United States has clarified that its recent military strikes on Iranian nuclear facilities were not intended to overthrow the Iranian government, but to neutralise what it described as urgent threats to national security, amid rising tensions and fears of broader regional conflict.
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A chorus of condemnation emerged from Latin America on Sunday as leaders from Chile, Cuba, Venezuela, Colombia, and Bolivia denounced the United States for its recent airstrikes on three Iranian nuclear facilities.
Gulf states hosting major U.S. military bases were placed on high alert Sunday after American airstrikes destroyed Iran’s main nuclear sites, raising fears of regional retaliation and a broader conflict that could engulf key energy exporters and destabilise global security.
Senior Russian officials have condemned the United States’ recent military strikes on Iran, warning of a spiralling regional conflict and accusing U.S. President Donald Trump of igniting a "new war" that could backfire by strengthening Iran's leadership.
The United States has clarified that its recent military strikes on Iranian nuclear facilities were not intended to overthrow the Iranian government, but to neutralise what it described as urgent threats to national security, amid rising tensions and fears of broader regional conflict.
Iran's top security body, the SNSC, will decide on closing the Strait of Hormuz, a critical oil and gas chokepoint, after parliament's reported approval. A Revolutionary Guards commander stated the measure is "on the agenda," signaling escalating tensions.
Azerbaijan’s Foreign Ministry on Saturday voiced deep concern over the escalating tensions following the United States’ military strikes on Iranian nuclear facilities, calling on all sides to prioritize diplomacy over confrontation.
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