Bilateral trade agreement – Artifex.News https://artifex.news Stay Connected. Stay Informed. Thu, 15 Jan 2026 13:49:00 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://artifex.news/wp-content/uploads/2026/05/cropped-cropped-app-logo-32x32.png Bilateral trade agreement – Artifex.News https://artifex.news 32 32 Top EU leaders to visit India as Republic Day guests; likely to sign trade deal https://artifex.news/article70512707-ece/ Thu, 15 Jan 2026 13:49:00 +0000 https://artifex.news/article70512707-ece/ Read More “Top EU leaders to visit India as Republic Day guests; likely to sign trade deal” »

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Image used for representational purpose only.
| Photo Credit: Getty Images/iStockphoto

India and the European Union are “very close” to a Bilateral Trade Agreement (BTA), said the government, as both Delhi and Brussels formally announced the EU leadership will travel to India as chief guests for Republic Day and to hold the much-delayed EU-India summit with Prime Minister Narendra Modi. 

The EU-India BTA talks were originally launched in 2007 and then re-launched in 2022, and negotiations were fast-tracked in February 2025 during a visit by European Commission President Ursula Von Der Leyen. 

While the trade deal will be the focus of the visit, both sides are also expected to upgrade their strategic partnership, first announced in 2004, and adopt the new EU-India strategic agenda which includes cooperation in the Indo-Pacific.

‘Crucial partner’

Both leaders will be accorded a State visit by India, and will witness the Republic Day parade on January 26 and the EI-India summit and a business summit on January 27, 2026.

“India is a crucial partner for the EU. Together, we share the capacity and responsibility to protect the rules-based international order. This meeting will be a key opportunity to build on our partnership and drive progress in our cooperation,” António Costa, President of the European Council said in a statement announcing the visit by him and Ms. Von Der Leyen from January 25-27. 

“Trade, security and defence, the clean transition and people to people cooperation will top the agenda of the discussions,” the statement added.

“[The] participation of EU leaders as chief guests at the 77th Republic Day and the 16th India-EU Summit will further deepen the India-EU strategic partnership and advance collaboration in priority areas of mutual interest,” the Ministry of External Affairs said in its release.

Engaged daily

Speaking to the media on Thursday (January 15, 2026), Commerce Secretary Rajesh Agrawal said that the negotiation teams were “very close now” to the conclusion of negotiations.

“We have closed 20 out of 24 chapters completely,” Mr. Agrawal said. “There are a few issues that still require ongoing negotiations and we are engaged virtually on a day-to-day basis on these. We are trying to see if we can meet the timeline when our leaders meet.”

Agricultural hurdles

Mr. Agrawal, however, clarified that this was limited to “sensitive agricultural” products.

“My sense is that, the official that has been quoted, said that sensitive agricultural issues on both sides are off the table, and I agree with her,” Mr. Agrawal said.

The question over agricultural products is significant as the EU’s latest trade deal with South American MERCOSUR countries has run into trouble with France over protests by French farmers this week. While Mr. Costa and Ms. Von Der Leyen will sign the agreement in Paraguay on Saturday (January 17, 2026), the European Parliament will need to ratify it. 

Under political pressure over one agreement, French President Emmanuel Macron, whose government survived two no-confidence motions over the agricultural issue this week, may raise his concerns on the agreement with India when he visits next month for the AI summit in Delhi, officials aware of the negotiations said.

The officials said France would be watching progress of the negotiations on agricultural market access especially for items like wine, dairy products, meat and processed food, which are considered “sensitive” for India.



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India negotiating bilateral investment treaties with different countries to promote foreign inflow: FM https://artifex.news/article67800211-ece/ Thu, 01 Feb 2024 10:53:23 +0000 https://artifex.news/article67800211-ece/ Read More “India negotiating bilateral investment treaties with different countries to promote foreign inflow: FM” »

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Union Finance Minister Nirmala Sitharaman presents the Interim Budget 2024 in the Lok Sabha, at Parliament House in New Delhi on Feb. 1, 2024.
| Photo Credit: PTI

India is negotiating bilateral investment treaties with different countries with a view to promote foreign inflows, Finance Minister Nirmala Sitharaman said on February 1. She said that foreign direct investment (FDI) has doubled during 2014-23 to $596 billion compared to the inflow received during 2005-14.

“For encouraging sustained foreign investment, we are negotiating bilateral investment treaties with our foreign partners, in the spirit of ‘first develop India’,” she said while presenting the interim Budget 2024-25.

India is negotiating bilateral treaties with countries, such as the UK. These investment treaties help in promoting and protecting investments in each other’s countries. These pacts are important as India has earlier lost two international arbitration cases against British telecom giant Vodafone and Cairn Energy plc of the UK over the retrospective levy of taxes.

Align treaties with global practices

Commenting on bilateral investment treaties, economic think tank GTRI (Global Trade Research Initiative) said that India needs to align its treaties with global investment practices, address the negative perception caused by the mass treaty cancellations and reflect on its negotiation skills. New agreements should ideally resolve these concerns, it said in a statement.

GTRI said that India has cancelled 77 of its over 80 bilateral investment treaties (BIT) by 2016, as they didn’t align with its interests. “Now, it is renegotiating with 37 countries using the restrictive 2016 Model BIT, which may lead to protracted negotiations due to its narrow ‘investment’ definition, vague terms, omission of principles like ‘fair and equitable treatment’, and Most-Favoured Nation status,” GTRI co-founder Ajay Srivastava said. He added that the model BIT also demands investors seek local solutions for at least five years before arbitration, making new BITs challenging for other countries.

Foreign direct investment (FDI) equity inflows in India declined 24 per cent to USD 20.48 billion in April-September 2023, according to government data. The total FDI — which includes equity inflows, reinvested earnings and other capital — contracted 15.5 per cent to USD 32.9 billion during the period under review against USD 38.94 billion in April-June 2022.

The top investor countries include Singapore, Mauritius, the US, the UK, and the UAE. Computer software and hardware, trading, services, telecommunication, automobile, pharma and chemicals are some of the key sectors that attract FDI into India.

An official had earlier said that hardening interest rates globally and worsening geopolitical situation impacted FDI inflows into India in 2022-23.



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