India, EU Nearing Conclusion on Trade Pact; Top Leaders to Visit New Delhi from Jan 25–27

India is expected to conclude the much-anticipated trade deal with the European Union by the end of January, Trade Secretary Rajesh Agarwal said on Thursday. The conclusion of the India-EU trade deal comes amid continued delays in talks with Washington. On January 9, India and the EU held talks in Brussels on the proposed free trade agreement (FTA).

The deal, which has been under discussion for years, is expected to boost bilateral trade relations and deepen market access, reducing dependence on China and Russia. Bilateral trade between India and the bloc totalled $140 billion in 2024, making the EU India’s largest trading partner. Agarwal added that the two sides were “very close” to finalising the pact and were exploring whether it would be viable to wrap it up before top EU leaders visit New Delhi later this month. The European Commission, negotiating on behalf of the bloc’s 27 member states, expressed cautious optimism in remarks to EU envoys, Reuters reported, citing sources.

One of the major points of dispute between the bloc and New Delhi has been automobiles and steel. The EU wants India to sharply cut import tariffs on EU cars, while India is concerned that its steel exports to the EU will be constrained by the EU’s carbon border levy and safeguard measures that lower overall steel imports. The Ministry of Commerce and Industry has notified that some sensitive agricultural items have been excluded from negotiations. Trade ministry officials said India will not open its agriculture or dairy sectors under any trade pact, citing farmers’ interests. Challenges also remain over regulatory alignment and the protection of sensitive sectors, reports said.

On the India-US trade deal, Agarwal said talks are continuing and that an agreement would be reached when both sides are ready. Negotiations between New Delhi and Washington paused briefly towards the end of 2025 due to a breakdown in communication.

Top EU Leaders to Visit India

The President of the European Council, António Luís Santos da Costa, and European Commission President Ursula von der Leyen are scheduled to visit India from January 25 to 27 and will co-chair an India-EU summit on January 27, the Ministry of External Affairs said. Prime Minister Narendra Modi has extended an invitation to EU leaders to attend the 77th Republic Day celebrations as chief guests, the ministry added. The high-profile visit by top EU leaders follows German Chancellor Friedrich Merz’s visit to India earlier last week.

The EU leaders are expected to hold high-level restricted and delegation-level talks with President Droupadi Murmu and Prime Minister Modi. An India-EU Business Forum is also expected to be organised on the sidelines of the summit, Mint reported.