India and the European Union are accelerating efforts to finalize an extended trade deal, aiming for a quick resolution despite a looming year-end deadline that could be missed. Recent discussions demonstrate the willingness of both sides to bridge their differences, even if significant differences remain.
Following a meeting between Indian Commerce Minister Piyush Goyal and an EU delegation led by European Commissioner Maros Sefcovic, momentum toward closing the deal remains, but unresolved issues remain. Previously reinforced by Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, the negotiations have not yet respected the targeted timetable due to major differences.
Although the potential for stronger trade relations between India and the EU exists, covering €120 billion in 2024 alone, points of contention include tariff reductions, market access and regulatory harmonization. The areas of steel, automobiles and carbon taxes in particular require a more consensual dialogue, within the framework of parallel discussions on investment protection and geographical indications.
(With input from agencies.)
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