India and the EU are expected to announce the conclusion of trade negotiations on Tuesday.

India and the European Union are expected to announce on Tuesday the conclusion of lengthy negotiations on a free trade agreement, paving the way for lower tariffs on European cars and wine and a wider market for Indian electronics, textiles, and chemicals, according to two Indian and European government sources.

The announcement could follow a meeting between Indian Prime Minister Narendra Modi and European Council President Antonio Costa and European Commission President Ursula von der Leyen, who will co-chair the India-EU summit during their visit to India from January 25 to 28, one of the Indian government sources said.

If the agreement is finalized and ratified by the European Parliament, a process that could take at least a year, it will boost Indian exports such as textiles and jewelry, the official said. Negotiations resumed in 2022 after a nine-year hiatus and gained momentum last year amid rising trade tensions.

At the World Economic Forum in Davos on Tuesday, von der Leyen signaled progress, saying the European Union was close to concluding an agreement but acknowledging that more work needed to be done.

The agreement comes days after the EU signed a key agreement with the South American bloc Mercosur, following agreements last year with Indonesia, Mexico, and Switzerland.

(reuters, su)