New Delhi, Oct. 16 -- India and the European Union have intensified efforts to finalize the long-awaited free-trade pact as New Delhi's negotiators have stayed back in Brussels after the latest round this week to resolve one of the most contentious issues-the rules of origin, according to two people familiar with the matter.

The government has instructed its negotiating team to resolve the matter before returning to New Delhi, emphasizing the need to finalize the deal before the end of the year, the people mentioned above told Mint, speaking on the condition of anonymity. The team is led by special secretary L. Satya Srinivas.

At the heart of the dispute lies Europe's demand for tighter origin norms to ensure third-country goods don't e...