India, EU Narrow FTA Differences, Tackle Carbon Tax in Ongoing Talks

• India and the EU are narrowing differences in Free Trade Agreement (FTA) talks after 14 rounds of negotiations.
• Difficult issues like the Carbon Border Adjustment Mechanism (CBAM) or Carbon Tax are currently under discussion in the India-EU FTA talks.
• Recent high-level discussions between India's Commerce Minister and EU's Trade Commissioner aimed to guide negotiating teams towards an early FTA conclusion.
• India is actively pursuing multiple other FTA negotiations, including with Oman (expected soon), Australia (CECA in Jan 2026), and the Russia-led EAEU (Feb 2026).
• Opportunities for increasing Indian exports to Russia, particularly in pharmaceuticals and auto components, were noted following recent engagements.

Why It Matters: India-EU FTA talks advance, impacting trade & addressing CBAM.