EU Leaders Arrive in India for Republic Day, Set to Seal Landmark Trade Deal

Top European Union leaders have arrived in New Delhi to attend India’s Republic Day celebrations and hold high-level talks ahead of a key EU-India Summit expected to conclude a long-awaited free trade agreement.

European Council President Antonio Luís Santos da Costa and European Commission President Ursula von der Leyen arrived over the weekend as chief guests for the 77th Republic Day parade on Monday.

They are scheduled to meet Prime Minister Narendra Modi on Tuesday at the EU-India Summit, where both sides are expected to announce a comprehensive trade pact following years of stalled negotiations.

Von der Leyen recently described the agreement as the “mother of all deals” at the World Economic Forum in Davos, echoing a phrase previously used by Commerce Minister Piyush Goyal. The deal would create a combined market of nearly 2 billion people.

Economist Anupam Manur of the Takshashila Institution said negotiations have continued for more than a decade, with long-standing disagreements gradually being resolved.

“The main contentious issues remain India’s efforts to protect its farmers and dairy producers and the EU’s strict climate regulations and taxation rules. Despite this, both sides see enormous value in the agreement,” Manur said.

India currently has free trade agreements with more than a dozen countries, including Australia, the UAE, and Japan. An agreement with the EU would be its third major pact in less than a year, following deals with the UK in July and Oman in December. New Delhi also recently concluded negotiations with New Zealand.

India’s push for trade diversification has accelerated after US President Donald Trump imposed 50 percent tariffs on Indian goods, prompting New Delhi to strengthen economic ties with other major markets.

The European Union is also facing trade uncertainty. Earlier this month, Trump threatened tariffs on several EU countries over their stance on Greenland, an autonomous Danish territory.

Manur said recent US trade policies have acted as a major catalyst for the agreement.

“The unilateral and economically irrational trade decisions taken by their biggest trading partner, the United States, have forced both India and the EU to look for alternatives,” he said.

The EU is currently India’s largest trading partner in goods, with trade worth about $136 billion in the 2024-25 financial year. India exports roughly $75 billion worth of goods to EU member states.

Manur said the agreement could significantly boost trade volumes.

“In value terms, this would be India’s biggest free trade agreement, surpassing deals with the UK, Australia, Oman, and the UAE,” he said.