The European Union and India are set to formalize a significant free trade agreement (FTA) on January 27, 2026, during a visit by European Commission President Ursula von der Leyen and European Council President António Costa to New Delhi. The leaders will also be chief guests at India's Republic Day celebrations. A key aspect of this impending deal, as confirmed by President von der Leyen in a closed-door meeting with MEPs, is the deliberate exclusion of the agriculture sector. This decision reflects the immense political sensitivity surrounding agriculture in India, where approximately 44% of the workforce is employed in the sector, making extensive market access for European food products a contentious issue. While the agreement broadly excludes agriculture, it is not an absolute carve-out for all food and drink items. Reports indicate that India has agreed to reduce its steep 150% tariffs on European wine and spirits. However, protections for European geographical indications (GIs) – which safeguard traditional regional foods – are notably not part of this agreement. The exclusion of agriculture was reportedly understood from the initial stages of the negotiations. Despite this specific exclusion, the proposed FTA is poised to be the European Union's largest trade deal to date, providing access to a market that accounts for roughly a quarter of the global population. Currently, 20 out of 24 chapters of the FTA have been finalized, with both sides engaged in daily virtual negotiations to resolve the remaining issues, aiming for conclusion before the leaders' summit. Outstanding areas of discussion include the Carbon Border Adjustment Mechanism (CBAM) and other sector-specific market access topics. The deal signifies a major step in deepening economic ties between the EU, India's largest trading partner, and India, further solidifying a strategic partnership amidst evolving global trade dynamics.