The European Union and India are set to announce a landmark trade deal after nearly two decades of on-off talks, as both sides aim to deepen ties amid tensions with the US.

India's Commerce Secretary Rajesh Agarwal said on Monday that negotiations had been wrapped up and the deal finalised.

European Commission President Ursula von der Leyen and European Council President António Luís Santos da Costa are in Delhi, where the announcement is expected.

Both India and the EU are seeking to strengthen strategic and trade ties with the rest of the world as they contend with economic and geopolitical pressure from the US.

Delhi is grappling with 50% tariffs imposed by President Donald Trump last year amid talks aimed at securing a trade deal between India and the US that are still dragging on.