EU, India unlikely to finalize trade agreement by end of year

Trade negotiators from India and the European Union are no longer optimistic about finalising a trade agreement by the end of the year, with talks stuck over some key issues such as steel and automobiles, Bloomberg News reported on Friday, citing sources familiar with the matter.

The EU wants New Delhi to raise its quota of about 80,000 cars it can export to India under a reduced tariff, the report said.

Meanwhile, New Delhi is seeking an easing of duties on some steel products exported to the EU and wants flexibility around the bloc’s rules on carbon taxes, the report added.

Reuters could not immediately verify the report.

EU, India unlikely to finalize trade agreement by end of year, Bloomberg News reports

Trade negotiators from India and the European Union are no longer optimistic about finalising a trade agreement by the end of the year, with talks stuck over some key issues such as steel and automobiles, Bloomberg News reported on Friday, citing sources familiar with the matter.

The EU wants New Delhi to raise its quota of about 80,000 cars it can export to India under a reduced tariff, the report said.

Meanwhile, New Delhi is seeking an easing of duties on some steel products exported to the EU and wants flexibility around the bloc’s rules on carbon taxes, the report added.

Reuters could not immediately verify the report.

Earlier in 9 December 2025, Indian Commerce Minister Piyush Goyal stated that India and the European Union will work to seal a long-pending trade deal at the earliest opportunity, after concluding another round of talks amid signs that a year-end deadline may slip.

Indian Commerce Minister met an EU delegation led by European Commissioner for Trade and Economic Security Maros Sefcovic, as the two sides continued efforts to conclude the pact, the statement said.

Both sides have been pushing to close a broad trade deal after European Commission President Ursula von der Leyen and Prime Minister Narendra Modi agreed earlier this year to fast-track negotiations towards a year-end target.

Talks relaunched in 2022 have gained pace since U.S. President Donald Trump imposed tariff hikes on trading partners including India. Brussels sealed deals with Mexico and Indonesia and stepped up talks with India.

Once implemented, the pact could further lift India-EU bilateral trade, which reached 120 billion euros ($139.75 billion) in 2024, with the balance in India’s favour.

Officials, however, said despite political will to conclude a deal, many issues still remain unresolved.

The EU wants steep tariff cuts on cars, medical devices, wine, spirits and meat, along with stronger intellectual property rules, while India is seeking duty-free access for labour-intensive goods and faster recognition of its growing autos and electronics sectors, the officials said.