India, EU to Push for Trade Deal by '25-End

Pacts on investment protection, GI to come with the agreement

- SHREYA NANDI

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen on Friday set a deadline to seal the long-pending free-trade agreement (FTA) by the end of this calendar year, amid fears of an escalating trade war and a changing geopolitical landscape.

The trade deal will be accompanied with pacts on investment protection and geographical indicators (GI).

Finalising a trade deal is expected to give a fresh impetus to relations between India and the European Union (EU), amid fast-changing geopolitical scenarios — diversifying supply chains from China and, more recently, the escalating trade war due to reciprocal tariff threats from American President Donald Trump.

The timing of these FTA talks will be crucial since India and the US plan to negotiate the first phase of a trade agreement over the next seven-eight months.

Finalising a trade deal with the US and EU will result in India having FTAs with two of its largest trade partners indicating the growing importance of bilateralism in trade.