NEW DELHI, Nov 29: The European Union and India hope to conclude a free trade agreement next year, officials of both sides said on Thursday.

The EU is India’s largest trading partner, accounting for a fifth of India’s total trade, and is also one of its most important sources of foreign investment.

“We hope to conclude (the free trade talks) by the end of 2008,” EU Trade Commissioner Peter Mandelson told reporters on the sidelines of an India-EU business meeting in New Delhi.

“Business on both sides should throw its weight behind a deal that does justice to the ambition we brought to the table a year ago,” Mandelson said.

“The free trade pact would provide a big boost to both economies and shore up global demand if the world economy begins to cool,” he added.

India’s Commerce and Industry Minister Kamal Nath also said that the free trade agreement “should be concluded by next year.” But Mandelson warned that the European bloc was looking for an agreement with “content” rather than a political accord.

While looking for “speedy progress” to conclude the deal, “I... don’t want to sacrifice... content,” he said. Indian and EU leaders will meet on Friday in an attempt to push forward the proposed free trade deal.—AFP