Link Securities | According to Reuters, India and the European Union (EU) announced yesterday that they have reached a trade agreement that will drastically reduce tariffs on most products, with the aim of boosting bilateral trade. India and the EU indicated that agriculture-related products such as soybeans, beef, sugar, rice and dairy products have been kept out of the scope of the trade agreement. According to Reuters, trade between India and the EU amounted to $136.5 billion in the fiscal year ending in March 2025, compared to $132 billion between India and the US and $128 billion between India and China. For its part, the verification process in the EU could suffer some setbacks, as in the case of Mercosur. In this regard, it should be remembered that the EU Parliament has voted in favour of challenging the agreement between the EU and Mercosur before the EU Court of Justice.