Its their first commitment to a deadline on talks that have been going for years, as they look to soften the effect of tariff increases from the US.

India will finalise a "mutually beneficial" free trade deal with the European Union by the end of this year, Prime Minister Narendra Modi said after meeting with EU chief Ursula von der Leyen.

India and the EU relaunched talks on a long-pending free trade agreement in 2021, but issues like market access for products such as cars and alcoholic beverages have been sticking points. The next round of negotiations is set to take place in March.

NEW DELHI (Reuters) -Indian Prime Minister Narendra Modi and the European Union have agreed to push for the conclusion of a free trade agreement this year, European Commission President Ursula von der Leyen said on Friday.