India’s Trade and Commerce Secretary Rajesh Aggarwal said that India is close to signing a trade deal with the European Union later this month, with negotiations expected to conclude by January 26.
The Commerce Secretary said that talks between the two parties have already been in the last and most arduous leg of negotiations for the past three months. He added that 20 out of 24 chapters of the trade agreement are completely closed. The sides are engaged in day-to-day talks in virtual mode, the official stated.
Agrawal said the two sides were very close to finalising the agreement and are exploring whether it could be wrapped up before leaders from both sides meet in New Delhi this month. The European Union leaders will attend India’s Republic Day celebrations on January 26, followed by an India–EU Summit on January 27.
India-EU trade-deal significance-
India has been in talks with the European Union for several years, and talks resumed in 2022, gaining pace after US President Donald Trump imposed tariff hikes on trading partners, including India.
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 to fast-track negotiations in an effort to close a deal in 2025.
The deal will open up India’s vast and previously guarded markets, with more than 1.4 billion consumers , to European goods and potentially reshape global trade flows as protectionism rises and a US-India trade deal remains stalled. At the same time, the deal will open the vast European Union market to India, providing a stable export destination for India’s high-value products, such as textiles, seafood, agricultural products, and pharmaceuticals.
Indian exports in December
As per the latest December trade data by the Ministry of Trade and Commerce, India’s merchandise exports rose 1.87% to $38.5 billion in December 2025. Agarwal stated that, despite global uncertainties, India’s exports are experiencing positive growth. He added that exports of goods and services are likely to cross $850 billion in FY26. During April–December, exports rose 2.44% to $330.29 billion.
India’s imports increased to $63.55 billion in December 2025, up from $58.43 billion in December 2024. The trade deficit stood at $25 billion during the month under review.