Overview
- European Council chief Antonio Costa and European Commission president Ursula von der Leyen visit Jan. 25–27, with a small EU military contingent joining India’s Republic Day parade for the first time outside Europe.
- Any announcement on wrapping up talks would trigger legal scrubbing followed by European Parliament consent and European Council approval before the agreement can be signed and take effect.
- Negotiators are pursuing a compromise on the EU’s Carbon Border Adjustment Mechanism, with progress reported on wines and spirits and plans for tariff‑rate quotas for automobiles, while agriculture and dairy remain outside the deal’s scope.
- A Security and Defence Partnership is slated to be unveiled alongside the trade announcement, with talks to launch a Security of Information Agreement and potential pathways for Indian industry participation in the EU’s SAFE defence financing.
- Analysts expect tariff relief to boost Indian textiles, garments, leather and footwear and to expand services access, though GTRI warns CBAM and dense non‑tariff rules could blunt gains for exporters, particularly MSMEs.