Dialogos

India Expects EU Trade Deal Within the Month

Published January 15, 2026, 20:00
India Expects EU Trade Deal Within the Month

India expects to finalize negotiations for a trade agreement with the European Union within the current month. This agreement would be the largest New Delhi has ever concluded and is considered important as India seeks new markets amid pressure from US tariffs. Both sides are keen to deepen their economic ties and reduce their dependence on China and Russia. Bilateral trade between India and the EU reached €120 billion in 2024, making the Union India's largest trading partner. Talks are at an advanced stage, with both sides considering finalizing the agreement before the leaders' meeting later this month. Simultaneously, negotiations for a trade agreement with the US are ongoing, but a deal depends on the readiness of both sides. The main sticking point in the EU negotiations concerns tariffs on cars and steel. The EU is seeking a reduction in tariffs on European cars, while India is concerned about potential restrictions on steel exports due to the EU's carbon border adjustment mechanism and safeguard measures. Completing the agreement would open the vast Indian market to European products and could reshape global trade flows, especially in an environment of rising protectionism and stalled US-India negotiations. Both sides are pushing for the deal's conclusion, having agreed to accelerate talks with a target of reaching an agreement in 2025.