New Delhi, May 21 (PTI) Negotiations for a proposed trade pact between India and the 27-nation European Union are progressing at a faster pace and both the sides are looking at concluding the talks for an early harvest trade agreement by July this year, a government official said on Wednesday.

The early harvest or an interim trade agreement would include issues such as intellectual property rights (IPRs), government procurement, tariff, and non-tariff barriers, the official said.

An Indian official team from the commerce ministry is visiting Brussels this week for the next round of negotiations on the trade agreement with the European Union (EU). This visit comes in the backdrop of recently-concluded eleventh round of talks between chief negotiators of both the sides on May 16 here in the national capital.

"We are looking for an early harvest. We are trying to do it as early as possible...targeting by July for early harvest," the official added.

The two sides have agreed to conclude the agreement in two phases on account of the uncertain global trade environment, particularly due to the US tariff actions under President Donald Trump.

India has followed the practice of negotiating trade pacts in two phases with Australia.

The early harvest pact would lead to a full fledged free trade agreement.

Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in products like wines, spirits, meat, poultry and a strong intellectual property regime.

Indian goods' exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact gets concluded successfully.

In June 2022, India and the 27-nation EU bloc resumed negotiations for a comprehensive free trade agreement, an investment protection agreement and a pact on geographical indications (GIs) after a gap of over eight years.

It stalled in 2013 due to differences over the level of opening up of the markets.

On February 28, Prime Minister Narendra Modi and the European Commission President agreed to seal a much-awaited free trade deal by the end of this year.

The India-EU trade pact negotiations cover 23 policy areas or chapters, including Trade in Goods, Trade in Services, Investment, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Remedies, Rules of Origin, Customs and Trade Facilitation, Competition, Trade Defence, Government Procurement, Dispute Settlement, Intellectual Property Rights, Geographical Indications, and Sustainable Development.

India's bilateral trade in goods with the EU was USD 137.41 billion in 2023-24 (exports worth USD 75.92 billion and imports worth USD 61.48 billion), making it the largest trading partner for goods.

The EU market accounts for about 17 per cent of India's total exports, while EU's exports to India make up 9 per cent of its total overseas shipments.

In addition, the bilateral trade in services, in 2023, between India and the EU was estimated at USD 51.45 billion. PTI RR HVA