India's trade deal with the European Union will include some agricultural products while excluding items that could harm domestic farmers, a senior official in New Delhi said, as the two sides inch closer to signing an agreement that has been under negotiation for years.
The free-trade agreement will not include products that could put Indian farmers at a competitive disadvantage, the official told reporters in New Delhi on Friday, asking not to be identified because the discussions are still ongoing. The official did not provide further details.
Major economies, including the US, have been pressing India to provide wider access to its farm sector. Agricultural products, however, have long been a red line for New Delhi, even as it has approached trade negotiations with major partners with greater urgency since Washington imposed 50% tariffs on Indian goods. Last month, soon after New Delhi announced a trade pact with New Zealand, India's trade minister underscored that the deal “protected” the interests of its farmers.
The reluctance reflects domestic political considerations. Farmers are a major voting bloc in the most-populous nation, where millions of smallholders own less than 2 hectares (5 acres) of land.
India and the EU remain eager to clinch a trade deal as soon as possible, even as sticking points persist around sensitive areas like automobiles and steel. European Commission President Ursula von der Leyen and European Council President António Luís Santos da Costa are set to visit India later this month, raising expectations that the two sides could announce an agreement then.
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