India and European Union Aim to Finalize Free Trade Agreement by End of 2024
India and the European Union (EU) are optimistic about concluding a Free Trade Agreement (FTA) by the end of 2024 following the 14th round of negotiations in Brussels. While bilateral trade reached €120 billion in 2024, challenges remain regarding tariffs, sustainability, and carbon regulations. India has specifically objected to the EU's Carbon Border Adjustment Mechanism (CBAM), a tax on carbon-intensive imports scheduled for full implementation in January 2026. Additionally, discussions touched upon the India-Middle East-Europe Economic Corridor (IMEC) and the Global Gateway Forum to enhance connectivity and investment.
Key Points
- Negotiators are working to resolve sensitive issues in agriculture, dairy, pharma, and automobiles.
- India opposes the EU's CBAM, viewing it as a trade barrier that links climate action with trade.
- The India-Middle East-Europe Economic Corridor (IMEC) remains a strategic priority for both regions.
- A 15th round of talks is expected in New Delhi in November to finalize the pact.
Exam Facts
- Bilateral trade between India and the EU stood at €120 billion ($139 billion) in 2024.
- The Carbon Border Adjustment Mechanism (CBAM) transition period ends on January 1, 2026.
- The Global Gateway Forum is the EU's strategy for investment in infrastructure worldwide.
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