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India, EU Push to Seal Trade Deal in Three Months Amid US Tariff Pressures

India, EU Push to Seal Trade Deal in Three Months Amid US Tariff Pressures

07 October 2025 at 07:25 pm IST

India and the European Union are reportedly speeding up negotiations to finalise a free trade agreement within the next three months. The ambition reflects mounting pressure from global trade turbulence—especially heightened tariff actions from the United States—and both sides see the pact as a strategic bulwark against external economic shocks. Central sticking points still remain, particularly in the areas of agriculture, sustainability, and market access. India has voiced resistance to binding sustainability clauses tied to the EU’s Carbon Border Adjustment Mechanism, arguing they unfairly penalize developing economies. Meanwhile, the EU is pushing for greater liberalization in sectors like autos, processed goods, and services. Observers note that India views the accelerated timeline as a bold assertion of its evolving economic stature, rather than a reactive move to external pressures. For Europe, the agreement would help diversify supply chains and reduce dependency on China and more volatile markets. The months ahead will see intense diplomacy, with both parties hoping to overcome divergent stances and deliver a landmark deal.