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India and EU Close In on Trade Deal Ahead of Jan. 27 Summit

Officials say 20 of 24 chapters are completed, with final talks centering on the EU’s carbon border levy and market access for autos and steel.

Overview

  • European Council President Antonio Costa and European Commission President Ursula von der Leyen will be Republic Day chief guests and will co-chair the IndiaEU summit in New Delhi on January 27.
  • Negotiators report that 20 of 24 chapters are closed and are working daily to finish remaining items, with a possible announcement on January 27 contingent on resolving outstanding issues.
  • Key sticking points include the EU’s Carbon Border Adjustment Mechanism, now in effect for energy‑intensive sectors, along with differences over access in steel and automobiles.
  • Government officials say ‘sensitive’ agricultural items, including dairy, are being kept out of the agreement to navigate domestic concerns on both sides.
  • Commerce Minister Piyush Goyal has called the prospective pact the ‘mother of all deals,’ highlighting expected export gains for India as US tariffs push both sides to diversify trade ties.