HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
India, EU looking at concluding talks for early harvest trade agreement by July
May-22-2025

Negotiations for a proposed trade pact between India and the 27-nation European Union are progressing at a faster pace and both the sides are looking at concluding the talks for an early harvest trade agreement by July this year. The early harvest or an interim trade agreement would include issues such as intellectual property rights (IPRs), government procurement, tariff, and non-tariff barriers.

The two sides have agreed to conclude the agreement in two phases on account of the uncertain global trade environment, particularly due to the US tariff actions under President Donald Trump. India has followed the practice of negotiating trade pacts in two phases with Australia. The early harvest pact would lead to a full-fledged free trade agreement. Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in products like wines, spirits, meat, poultry and a strong intellectual property regime. Indian goods' exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact gets concluded successfully.     

In June 2022, India and the 27-nation EU bloc resumed negotiations for a comprehensive free trade agreement, an investment protection agreement and a pact on geographical indications (GIs) after a gap of over eight years. The negotiations stalled in 2013 due to differences over the level of opening up of the markets. On February 28, Prime Minister Narendra Modi and the European Commission President agreed to seal a much-awaited free trade deal by the end of this year.


  RELATED NEWS >>