The United States, citing discriminatory EU taxes and fines on American tech firms, warned of countermeasures targeting key European companies, signaling heightened trade tensions under President Donald Trump’s administration.
India–EU FTA represents the scaffolding for India’s next industrial leap. It offers the regulatory foundation, external confidence, and investment pipeline needed for Indian industry to move up the value chain and integrate more deeply with the world’s most advanced markets
In addition, Commerce Secretary Rajesh Agrawal said there have been discussions on reviving talks with the Southern African Customs Union (SACU), an issue that was raised during recent G20 engagements with Commerce Minister Piyush Goyal.
Tensions between the US and EU have escalated after President Donald Trump’s sharp criticisms and reports of a draft strategy seeking to sway Hungary, Poland, Austria, and Italy away from Brussels, deepening fears of European fragmentation.
India is ramping up its trade efforts heading into 2026, with a free trade deal with the EU on the horizon and negotiations advancing with the US, Oman, Peru, Chile, New Zealand, Israel and more. These moves aim to diversify export markets, reduce reliance on any single economy, and secure critical minerals amid global supply constraints.
Italy’s Deputy Prime Minister and Foreign Minister Antonio Tajani said he hopes the FTA could be concluded in the first six months of 2026, though he clarified that he is not directly responsible for trade negotiations.
Goyal acknowledged that some pending issues still need to be ironed out to conclude India-EU FTA talks
Carbon tax and market access for automobiles and steel, rules of origin, and barriers in services are the remaining sticking points, officials have said
Asked if the scheme will be revised or the deadline extended, the Ministry of Heavy Industries replied that 'no such proposal is presently under consideration'
Hungary’s Prime Minister Viktor Orbán met Vladimir Putin, promising to continue Russian oil imports despite EU pressure. He cited energy security, low prices, and Hungary’s role as a potential Ukraine peace mediator.
Agarwal said the final phase of negotiations effectively begun over the past two to three months, with regular engagement at all levels, including ministerial.
India is in talks with 14 countries or blocs on free trade agreements, the commerce minister has said
The Stoxx Europe 600 Index was down 0.3% by the close, extending losses since Monday to 2.2%.
The EU is confronting red tape and infrastructure bottlenecks that could slow the movement of tanks and heavy equipment across Europe, prompting new efforts to streamline permits and strengthen military mobility.
Global policy uncertainty has dampened export-linked offtake under India’s National Green Hydrogen Mission (NGHM), slowing final investment decisions and pushing back timelines for large-scale green hydrogen and ammonia projects.
Sources say New Delhi is seeking relief from the EU’s proposal to double duties on steel to 50% and tighten steel import quotas, while weighing tariff concessions on high-end European cars under the FTA
The 27-nation bloc is looking to ramp up pressure on Moscow and tighten controls, as air incursions and unexplained drone flights fuel worries the Kremlin is seeking to destabilise Europe.
The Centre is unlikely to issue any new QCOs while the review is underway, which also aims to ease the regulatory burden on MSMEs, who face higher costs and sourcing difficulties due to existing orders being heavily focused on raw materials.
The move reflects a strategic shift in India’s European fuel trade, reducing reliance on northern distribution hubs such as The Netherlands in favour of direct end markets such as Spain
The trade deal with EU could even happen by November, it is learnt, given that there is consensus on key issues such as automobiles, whisky and wine, on which the 27-nation bloc is seeking significant tariff reductions.
India’s upcoming carbon mechanism is expected to offset costs from the EU’s carbon tax, even as New Delhi continues to seek concessions beyond the FTA for smaller exporters.
EU leaders are set to approve a €140 billion loan to Ukraine, funded via matured Russian frozen assets. The plan aims to sustain Kyiv’s war effort, but legal and political hurdles remain.
As the EU prepares an ambitious Action Plan to rescue and decarbonise its steel industry, India must assess the global impacts, policy lessons, and cooperation opportunities arising from Europe’s evolving strategy
The ninth round of negotiations with Peru will be held from November 3 to 5, while a third round with Chile is planned for October 27 to 31. The South American countries are emerging as important sources of rare earths
Despite a thaw in diplomatic ties, the commerce ministry is prioritising ongoing FTA negotiations with several countries, making the resumption of FTA talks with Canada unlikely this year