New Delhi, Sept. 12 -- India and the European Union (EU) are narrowing differences on a long-awaited free trade agreement (FTA), showing progress on contentious issues such as electric vehicles (EVs) and farm goods, two people familiar with the matter said.

Negotiators are weighing a model similar to the India-UK pact, which eliminated tariffs on nearly all Indian agricultural exports, the people cited above said on the condition of anonymity. India is also considering concessions such as lowering duties on European whisky and opening parts of government procurement to EU firms.

"India is also expected to secure tariff relief on labour-intensive exports, including textiles, gems and jewellery, agricultural goods, and engineering product...