India, EU likely to announce conclusion of trade talks on Tuesday

India and the European Union are expected to announce the conclusion of protracted negotiations for a free trade pact on Tuesday, opening the way for reduced tariffs on European cars and wine and expanded market for Indian electronics, textiles and chemicals, two Indian and EU government sources said.

The announcement could follow Indian Prime Minister Narendra Modi's meeting with European Council President Antonio Costa and European Commission President Ursula von der Leyen, who will co-chair an India-EU summit during their visit to India from January 25 to 28, one of the Indian government sources said.



If finalised and ratified by the European Parliament, a process that could take at least a year, the trade pact would boost Indian exports such as textiles and jewellery, the official said. Negotiations were relaunched in 2022 after a nine-year pause, gaining traction last year amid rising trade tensions.



In August, President Donald Trump doubled tariffs on Indian imports to as much as 50%, among the highest in the world.



At the World Economic Forum in Davos on Tuesday, von der Leyen signalled progress, stating the European Union is close to concluding the agreement but acknowledged that additional work remains.