India and the European Union are poised to sign a comprehensive trade agreement, with a senior official confirming the inclusion of some agricultural products. This development marks a significant step in negotiations that have spanned several years, signaling a potential boost for bilateral trade.
Safeguarding Domestic Agriculture
The pact, however, will carefully exclude agricultural items that could undermine the competitiveness of Indian farmers. Officials emphasized that protecting the domestic agricultural sector, a critical voting bloc, remains a top priority for New Delhi. This cautious approach reflects past trade strategies, including recently concluded pacts that explicitly safeguarded local interests.
Overcoming Sticking Points
While progress is evident, sensitive areas such as automobiles and steel continue to be subjects of intense discussion. The anticipated visit of European Commission President Ursula von der Leyen and European Council President Charles Michel to India later this month has amplified expectations for a breakthrough. The urgency to finalize such agreements has grown for India, particularly following recent trade actions by major economies.