Overview
- An Indian commerce official said negotiations have concluded, with Ursula von der Leyen and Antonio Costa set to join Narendra Modi in New Delhi on Tuesday to announce the deal at their summit.
- The package comprises three linked agreements: a free trade deal cutting tariffs on 90% of goods, an investment protection accord, and a pact on geographical indications such as champagne and Darjeeling tea.
- For autos, India will slash import duties from 110% to roughly 40% immediately for luxury vehicles, with a phased reduction toward 10%; the EU gains in machinery, aerospace, chemicals and wines, while sensitive farm products are excluded and Europe offers greater access for Indian textiles.
- A parallel security and defense arrangement adds cooperation on cybersecurity, joint naval exercises, protection of maritime infrastructure, and classified information sharing, reflecting EU efforts to steer India away from Russian arms suppliers.
- Additional provisions include fast-track mobility for students, researchers and high-skilled tech workers, interoperability for EU firms to process data in India, a pathway to ease carbon-border frictions via EU-backed industrial decarbonization and recognition of Indian carbon credits, and a renewed push for the India–Middle East–Europe corridor.