India and the European Union have concluded negotiations for a free trade agreement, with both sides describing the deal as balanced and forward-looking. The agreement is expected to be signed later this year and is likely to take effect in 2027, following legal review and ratification.
The EU remains India’s largest trading partner, and the deal is anticipated to expand bilateral trade and investment, particularly in sectors affected by recent US tariffs.
According to Hindustan Times, European Council President Antonio Costa stated that the agreement sends a significant political message against rising tariffs and protectionism.
Costa emphasised the importance of India and the EU as providers of stability and reliability in the current global economic climate, highlighting the deal as a geopolitical stabiliser and a model for rules-based international trade.
As reported by The Indian Express, US Senator Ted Cruz has accused President Donald Trump, Vice-President JD Vance, and economic adviser Peter Navarro of resisting a US-India trade agreement. Cruz’s comments, based on leaked audio, indicate internal opposition within the US administration, with concerns that Trump’s tariff policies could harm the US economy and bilateral relations with India.
As highlighted by Hindustan Times, US Treasury Secretary Scott Bessent criticised the EU’s decision to finalise a trade deal with India while maintaining that India’s oil trade with Russia indirectly finances the conflict in Ukraine. Bessent reiterated that the US has imposed a 50% tariff on Indian goods, including a 25% tariff specifically related to India’s Russian oil imports. He stated, “Just to be clear again, the Russian oil goes into India, the refined products come out, and the Europeans buy the refined products. They are financing the war against themselves.”
As noted in an article by Hindustan Times, India’s commerce secretary Rajesh Agrawal described the deal as balanced and forward-looking, with legal scrubbing of the text currently underway.
The agreement is expected to propel trade and investment between India and the EU, with both sides aiming to sign the pact at the earliest possible date.
Coverage revealed that the conclusion of the India-EU trade deal comes at a time of strained ties between India and the US, with both Indian and European officials describing the agreement as historic. The deal is expected to enhance economic integration and provide new opportunities for both regions.
Trade negotiations between India and the US have faced multiple rounds of delays, as details emerged from leaked audio recordings of Senator Ted Cruz. The recordings indicate that internal disagreements within the US administration, particularly over tariffs and market access, have stalled progress on a bilateral trade agreement with India.
Peter Navarro, a key adviser in the Trump administration, has been at the centre of the stalled US-India trade talks, according to analysis. Navarro has previously referred to India as the “Maharaja of tariffs” and has criticised India’s trade practices, particularly regarding tariffs and purchases of Russian oil.
“The deal will propel trade and investments in both economies,” said India’s commerce secretary Rajesh Agrawal, as quoted in multiple sources.
Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.