India and the European Union will finalize a free trade agreement by the end of the year.

India and the European Union have agreed to finalize a free trade agreement by the end of this year.

This was announced by European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi at a joint press conference, reports Reuters.

Both parties have been trying to establish a free trade pact for many years. In 2022, negotiations officially resumed after a 9-year hiatus.

“We have prepared a cooperation plan in the areas of trade, technology, investment, innovation, green growth, security, skills, and mobility,” Modi stated.

Von der Leyen called for a trade and investment agreement that would cover sectors ranging from batteries to semiconductors, clean hydrogen, and defense.

The EU wants India to reduce tariffs on imported cars, wine, and whiskey within the trade agreement. Tariffs on these goods in India have reached 100% or more. In turn, India seeks to expand access to its affordable medicines and chemicals in the EU. The country also aims to lower tariffs on textiles, clothing, and leather. India opposes the EU's proposal to impose tariffs ranging from 20% to 35% on high-carbon goods, including aluminum, steel, and cement, starting from January 2026.

Background. Earlier, Mind reported that China and India halted purchases of Russian oil following sanctions against Russia's shadow fleet. Now, the Asian countries are sourcing oil from Kazakhstan.