India is close to signing a major trade deal with the European Union this month, trade secretary Rajesh Agrawal said. The agreement would open India’s massive market of over 1.4 billion consumers to European goods. Leaders aim to finalize it ahead of India’s Republic Day celebrations and an EU-India summit.
Agrawal said negotiations were “very close” and both sides were exploring whether they could wrap up the pact quickly. German Chancellor Friedrich Merz confirmed EU leaders plan to travel to India to seal the deal if talks conclude on time.
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The trade agreement could reshape global commerce as protectionism rises and a U.S.-India trade deal remains stalled. It would mark India’s largest-ever trade pact and strengthen ties with the EU. The deal follows fast-tracked talks agreed by Prime Minister Modi and European Commission President Ursula von der Leyen.
Negotiations began in 2022, accelerating after U.S. tariff hikes pressured India to diversify markets. While U.S. talks collapsed last year, India has signed trade agreements with the U.K., Oman, and New Zealand, showing growing global trade ambitions.
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The EU has also sealed deals with Mexico and Indonesia, while pursuing talks with India. Officials expect the pact to boost exports, attract investments, and enhance India’s role in global trade flows.