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3h ago

EU Leaders Visit New Delhi as India and EU Push to Finalize Trade Deal

Officials say a draft could be ready for the Jan. 27 summit with agriculture likely carved out.

Brazilian President Luiz Inacio Lula da Silva, right, and European Commission President Ursula von der Leyen shake hands on the sidelines of their meeting about the EU-Mercosur trade agreement in Rio de Janeiro, Brazil, Friday, Jan. 16, 2026. (AP Photo/Bruna Prado)
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Brazil’s President Luiz Inacio Lula da Silva attends a press conference with European Commission President Ursula von der Leyen, at the Itamaraty Palace in Rio de Janeiro, Brazil January 16, 2026. REUTERS/Ricardo Moraes

Overview

  • European Commission President Ursula von der Leyen and European Council President Antonio Costa will be chief guests at India’s Republic Day on Jan. 26 and will co-chair the 16th India–EU Summit on Jan. 27.
  • Negotiators report 20 of 24 FTA chapters are closed, with daily virtual talks under way to resolve remaining issues before leaders meet.
  • Key sticking points include the EU’s Carbon Border Adjustment Mechanism and market access for sectors such as steel and automobiles, according to officials and analysts.
  • Sensitive agricultural items are expected to be excluded from the pact, with both sides prioritizing a workable deal over a fully comprehensive one at this stage.
  • Possible summit deliverables include an FTA announcement if talks conclude, a formal security and defence partnership, and an India–EU Business Forum on the sidelines.