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India-EU Trade Deal Could Materialize by Year-End, Says Jaishankar

External Affairs Minister S. Jaishankar highlighted Europe's pragmatic stance and optimism for finalizing an India-EU trade deal by the end of 2025. Despite progress, India voices strong reservations about the EU’s Carbon Border Adjustment Mechanism. Both regions share common views on strategic autonomy, suggesting a deeper partnership ahead.

India-EU Trade Deal Could Materialize by Year-End, Says Jaishankar

India-EU Relations Poised for Significant Progress

India's External Affairs Minister, S. Jaishankar, expressed optimism about enhancing ties between India and the European Union (EU), highlighting that Europe has become significantly more pragmatic in its approach. Speaking from Brussels, where he is engaged in high-level talks with EU officials, Jaishankar suggested that a comprehensive trade agreement could be finalized by the end of 2025.

Key Meetings in Brussels

During his visit to Brussels, Jaishankar is set to meet with prominent EU leaders, including EU Commission President Ursula von der Leyen and EU Foreign Affairs Chief Kaja Kallas. The bilateral trade deal currently under negotiation is expected to take center stage during these discussions, reflecting both sides’ commitment to strengthening economic cooperation.

Progress Amid Challenges

While the prospects look promising, the minister acknowledged that certain challenges remain. Notably, India maintains deep reservations about the EU’s Carbon Border Adjustment Mechanism (CBAM), a climate-related tax targeting imports from countries with less stringent environmental policies.

"The notion that one region should dictate standards for the entire world is unacceptable to us," Jaishankar stated. "We have been very frank and open about our concerns regarding CBAM."

Strategic Autonomy Resonates with India

Jaishankar also noted a shift in Europe’s strategic thinking, pointing out that discussions around "strategic autonomy"—a concept India has long advocated—are gaining momentum within EU discourse.

"What I hear today in Europe are words like strategic autonomy. These used to be words in our lexicon," he observed, suggesting a growing alignment of perspectives between the two regions.

Looking Ahead to a Stronger Partnership

Expressing confidence in the future of India-EU relations, Jaishankar emphasized mutual interest in deepening collaboration.

"We seek a more robust and enduring partnership with the European Union, and there is every reason to believe the EU shares this aspiration," he remarked.

Summary

  • Europe shows increased pragmatism in trade talks with India.
  • The India-EU trade deal might be concluded by the end of 2025.
  • India expresses concerns over the EU's Carbon Border Adjustment Mechanism (CBAM).
  • Shared emphasis on ‘strategic autonomy’ signals common ground.

This evolving dialogue reflects a promising chapter in India-EU relations, balancing cooperation with candid discussions on key policy differences.

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