Import duty cuts on labour-intensive sectors such as textiles and footwear, as well as cars, and wines, are likely to be part of the free trade agreement between India and the 27-nation bloc European Union (EU), the conclusion of which is set to be announced on January 27 here, sources said.

They said the pact is also expected to include liberalisation of norms in several services sectors. India has pushed for zero-duty access for its labour-intensive sectors such as textiles, leather, apparel, gems and jewellery, and handicrafts. This has been a key demand in all free trade agreements (FTAs), finalised by India, this is one of the key demands and has been met in each one of them, including with the UK, the UAE, and Australia.