India-EU Trade Deal Nears Signing but Will Exclude Agriculture to…

Sarah J · 2026-01-19T16:18:28.000Z

As India and the European Union (EU) prepare to finalise a landmark Free Trade Agreement (FTA) expected to be signed in January 2026 in New Delhi, one of the most contested areas agriculture has been deliberately excluded from the pact, European Commission President Ursula von der Leyen told Members of the European Parliament. The decision to keep agriculture outside the scope of the trade deal reflects deep-seated sensitivities on both sides. Agriculture employs a significant portion of India’s workforce close to 44 % of total employment and Indian negotiators have consistently maintained that opening the sector to tariff-free European imports could undermine the livelihoods of farmers. While sensitive farm products like dairy, sugar and other commodities are excluded, the broader agreement is still expected to deliver substantial economic benefits by lowering tariffs and expanding market access on a wide range of industrial goods, services, investment and technology sectors. The deal one of the largest trade pacts India has pursued aims to boost bilateral trade, diversify export destinations and strengthen economic cooperation across digital trade, intellectual property, green technologies and manufacturing. European leaders, including von der Leyen and the President of the European Council, are expected to visit India in late January 2026 to formalise the agreement with Indian Prime Minister Narendra Modi, underlining the growing strategic alignment between the world’s fastest-growing major economy and the EU. Despite the exclusion of agriculture a sensitive red line for both sides trade experts say the pact could unlock new opportunities in sectors such as textiles, engineering goods, chemicals, pharmaceuticals, automobiles, digital services and renewable energy. These sectors are among those likely to benefit from lower tariffs, improved regulatory alignment and stronger bilateral economic links. Negotiators have worked for years to reconcile differences over market access, regulatory standards and tariffs. India has insisted on protecting its farming sector while seeking duty-free access for labour-intensive exports, and the EU has pushed for tariff reductions in its priority areas such as automobiles, machinery and advanced technology goods. #India #EU #TradeDeal #FTA #FreeTradeAgreement #Agriculture #MarketAccess #Exports #Industry #EconomicPartnership #BilateralTrade #MakeInIndia #InvestIndia #Innovation #Manufacturing #DigitalTrade

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India-EU Trade Deal Nears Signing but Will Exclude Agriculture to… | SEINET