India

The Economic Times | English | News | Jan. 19, 2026 | UndeterminedTrade Issues and Numbers

India is set to host the European Union’s top leaders on January 27 for the 16th India–EU Summit, where the long-pending India–EU Free Trade Agreement (FTA), officially called the Broad-based Trade and Investment Agreement (BTIA), may be finalized. The deal, described by Commerce Minister Piyush Goyal as the “mother of all deals,” would link two major democratic economies and create a combined market of nearly two billion people, marking a significant shift in global trade relations amid rising protectionism.

The FTA negotiations began in 2007 but stalled in 2013 over disagreements on tariffs, intellectual property rights, labor and environmental standards, and market access. Talks resumed vigorously after 2020 due to pandemic-related supply chain disruptions and geopolitical tensions. Since June 2022, discussions have expanded to encompass an investment protection pact and agreements on geographical indications, with most issues reportedly close to resolution as of early 2026.

The timing of the agreement is strategic, given rising US tariffs up to 50 percent on Indian exports and stalled US-India trade talks. The EU, India’s largest trading partner, accounts for about 17 percent of its exports and 9 percent of the EU’s overseas shipments. The FTA would help both reduce dependence on single markets like the US and China, and align with the EU’s broader efforts to deepen ties with emerging economies.

Core challenges remain around market access, particularly India’s high tariffs on automobiles and steel, and the EU’s demands for easier entry for its carmakers. India is firm on protecting its agriculture and dairy sectors, though some limited inclusion of agricultural products may be negotiated. The FTA is expected to benefit Indian exports of textiles, pharmaceuticals, leather, and services like IT and telecommunications by lowering tariffs and recognizing standards.

For the EU, the deal opens India’s large and relatively protected consumer market, potentially boosting sales of aircraft parts, electrical machinery, chemicals, and wines and spirits. The agreement is also likely to enhance two-way investments, with the EU already a significant investor in India, especially in manufacturing, renewable energy, and digital infrastructure, while Indian firms seek better access and predictability in European markets.

Sustainability remains a sensitive topic, as the EU demands adherence to labor and environmental standards, including climate commitments under the Paris Agreement, which must be aligned with India’s development priorities. If concluded, the India–EU FTA would set a precedent for large economies forging comprehensive agreements despite global trade tensions, potentially reshaping trade flows and cooperation on digital trade, investment protection, and green growth.

Livemint | English | News | Jan. 19, 2026 | Pollution

Indian chess grandmaster Vidit Gujrathi has publicly criticized the normalization of Delhi’s worsening air pollution, highlighting the severe health risks posed by prolonged exposure to toxic air. He shared a screenshot showing Delhi’s Air Quality Index (AQI) reaching a hazardous level of 598, emphasizing that solving the pollution crisis should be a top priority as residents are "slowly being poisoned."

The post garnered significant online attention, with many users expressing frustration and exhaustion over the recurring nature of the problem. Some noted that similar pollution issues affect other cities like Bangalore, while others pointed out that the worsening air quality has been an ongoing issue since 2001, suggesting that solutions will take years to materialize due to long-standing challenges.

Delhi’s air pollution remains dangerously high, with the Central Pollution Control Board recording an AQI of 376 at 9 am on Saturday, categorized as ‘very poor,’ and predicting a further rise into the ‘severe’ category over the weekend. The outlook for the following week shows little improvement. Despite annual public outrage and temporary emergency measures, long-term effective action continues to be uncertain.

The Hindu | English | News | Jan. 19, 2026 | Geopolitical Conflict and Disputes

The Supreme Court of India emphasized that treaties must be guided by national interest rather than pressure from foreign governments or corporations, underscoring the necessity to protect India's tax sovereignty, ensure fairness, and prevent misuse in international tax agreements. Justice J.B. Pardiwala, in a concurring opinion, upheld the taxability in India of capital gains arising from the 2018 exit of U.S.-based investor Tiger Global from Flipkart.

Justice Pardiwala outlined principles for India's approach to international tax treaties, advocating for transparency, periodic reviews, strong renegotiation and exit clauses, and explicit carve-outs safeguarding India's sovereign right to tax. The court prescribed safeguards to maintain economic sovereignty, prevent erosion of the tax base, and protect democratic control.

The suggested safeguards include incorporating limitation of benefits clauses to prevent treaty abuse by shell companies and allowing domestic anti-avoidance measures such as the General Anti-Avoidance Rule to apply alongside tax treaties. Overall, treaties should prioritize broader economic and public interests instead of mere bureaucratic or diplomatic considerations.

The case relates to Tiger Global's 2018 exit from Flipkart coinciding with Walmart's acquisition of a controlling stake, where Tiger Global sought an Advance Authority Ruling from the Indian Income Tax Department in 2019 regarding the tax implications.