After more than a decade of false starts, India and the European Union appear closer than ever to clinching a free-trade agreement, buoyed by renewed political will and converging economic interests despite lingering tensions over carbon taxes and Russia.
Analysts say the breakthrough may be near following a fresh round of high-level talks in New Delhi that injected new urgency into negotiations that have been stuck in procedural drift for years. Both sides are seeking to secure supply chains and reduce volatility at a time of rising US protectionism and shifting global trade alignments.
Indian Commerce Minister Piyush Goyal met European Trade Commissioner Maros Sefcovic in Delhi on Monday, renewing efforts to bring the long-running negotiations to a close.
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The two sides had agreed earlier this year to fast track discussions towards a year-end target, with momentum building since Washington raised tariffs on key trading partners, including India, this summer.
“We discussed the progress on the India-EU FTA and explored ways to resolve the issues to further advance the negotiations,” Goyal said in a social media post after the meeting, adding that he was “looking forward to continued cooperation towards a mutually beneficial” pact.
Carbon friction