EU and India Move Closer to Landmark Free Trade and Defence Deals.

EU and India Move Closer to Landmark Free Trade and Defence Deals.

Brussels, (Unib Rashid) __ Key details of the proposed European Union–India Free Trade Agreement (FTA) and a parallel defence cooperation deal have begun to emerge as the EU’s top leadership visits New Delhi to advance negotiations.

European Council President António Costa, European Commission President Ursula von der Leyen, and EU High Representative for Foreign Affairs Kaja Kallas, along with senior officials, are in India as special guests to push forward the landmark agreements.

According to reports published in various European media outlets, the EU is pressing India to reduce tariffs on cars, while India is seeking firm guarantees that its steel exports will not be adversely affected by upcoming EU steel tariffs or the bloc’s Carbon Border Adjustment Mechanism (CBAM).

Negotiators were reportedly continuing discussions on these contentious points even on Sunday, with expectations that a breakthrough could be achieved by Tuesday. Reports suggest India is likely to agree to lower automobile tariffs, while the EU may offer additional decarbonisation support to Indian companies.

One of the most challenging aspects of the deal remains agriculture, a politically sensitive area for both sides. Products such as meat, poultry, rice, and sugar are expected to be excluded from tariff reductions. However, duties on European wine, spirits, and olive oil entering the Indian market are expected to be significantly reduced — a move likely to win support from agriculture-focused EU member states such as France and Ireland.

Another major outcome of the visit is the proposed EU–India Security and Defence Partnership, aimed at integrating European and Indian defence industries. According to a European official, the expectation is that India — traditionally a major buyer of Russian weaponry — will double its defence purchases from Europe in the coming years.

This is expected to include the acquisition of additional Dassault Rafale fighter jets from France, signalling a strategic shift in India’s defence procurement and a deepening of EU–India strategic ties.

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