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Story perspectives

India, EU Edge Closer to Key Trade Agreement

1/24/2026

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Story summary
  • India and the European Union are nearing completion of a free trade agreement to boost textiles, pharmaceuticals, automobiles, and digital services.
  • The deal is framed geopolitically to pursue tariff reductions and to address the European Union's Carbon Border Adjustment Mechanism (CBAM).
  • India views CBAM as a barrier to trade.
  • An upcoming visit by European Union leaders to India underscores the urgency of strengthening the EU-India partnership amid global uncertainties.