India-EU Trade Talks Stalled Over Dairy Dilemma

India and the EU's free-trade negotiations face hurdles due to disagreements over the Asian giant's dairy industry access. Trade Minister Piyush Goyal highlights the 'irrational' EU standards impeding progress, with agriculture being a major sticking point. German Chancellor Olaf Scholz seeks increased Indian market access amid reliance concerns on China.

India and the European Union are struggling to finalize a free-trade agreement, with the dairy industry emerging as a significant obstacle. Trade Minister Piyush Goyal emphasized that the EU's demand for access to India's dairy market might thwart the deal.

Negotiations, restarted in 2022 with hopes of concluding in 2023, have been progressing slowly, primarily due to what India describes as the EU's 'irrational' standards. German Economy Minister Robert Habeck has pointed out agriculture as the 'most problematic' issue, suggesting a focus on the industrial sector first.

Meanwhile, German Chancellor Olaf Scholz, visiting New Delhi with a high-level delegation, is keen on reducing Germany's dependency on China by securing better access to India's vast market. Scholz is set to meet with Prime Minister Narendra Modi to discuss potential pathways.

(With inputs from agencies.)