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EU Chiefs Arrive as India Gears Up for Historic Trade Deal & Republic Day

European Commission President Ursula von der Leyen has arrived in New Delhi for a state visit, where she and European Council President António Costa will be chief guests at India's Republic Day celebrations. The visit centers on the India-EU summit and the anticipated formalization of a major free trade agreement described as "historic." The push for closer economic ties is driven by a mutual need to build resilient supply chains and counter unpredictable global trade policies, particularly from the US and China. Bilateral trade between the two economies, representing a quarter of global GDP, has seen significant growth, underscoring the partnership's strategic importance.

Key Points: India-EU Summit: Von der Leyen Visits for Trade Deal & Republic Day

  • EU leaders as Republic Day chief guests
  • Summit to formalize trade deal
  • Aim to derisk global economy
  • Response to US tariffs & China policy
  • Bilateral trade hit 120B euros in 2024
2 min read

European Commission chief Ursula von der Leyen arrives in India

European Commission President Ursula von der Leyen arrives in India for Republic Day and a summit aimed at finalizing a major trade agreement.

"We are on the cusp of a historic trade agreement (with India). - Ursula von der Leyen"

New Delhi, January 24

European Commission President Ursula von der Leyen arrived in the national capital on Saturday on a state visit and was received by Minister of State for Commerce and Industry Jitin Prasada.

Von der Leyen, along with European Council President Antonio Luis Santos da Costa, will serve as chief guests at India's 77th Republic Day celebrations on Monday. The visit will be followed by the India-EU summit and the formalisation of a trade agreement.

Speaking earlier this week at the World Economic Forum in Davos, von der Leyen said, "We are on the cusp of a historic trade agreement (with India)." Commerce Minister Piyush Goyal has described the proposed free trade agreement as "the mother of all deals", as New Delhi and Brussels look to expand market access amid tightening global trade conditions driven by US tariffs and Chinese export restrictions.

External Affairs Minister S Jaishankar on Thursday met ambassadors from European Union member states and underlined the need for closer cooperation to "derisk the world economy" in response to unpredictable US policies. He said stronger India-EU engagement would help build resilient supply chains, provide global public goods such as humanitarian assistance and disaster relief, anti-piracy efforts and development projects, and contribute to global stability through enhanced trade, mobility and security cooperation.

India and the European Union have both been impacted by the trade approach of US President Donald Trump. India faces tariff rates of up to 50 per cent on certain exports to the United States, while the EU is yet to ratify a trade arrangement with Washington that has been criticised as imbalanced.

The EU's foreign policy chief, Kaja Kallas, has described India as "indispensable" to Europe's economic and strategic future. The 27-nation bloc has also advanced a new security and defence partnership with India.

Together, India and the European Union represent around a quarter of the global population and gross domestic product. According to EU data, bilateral trade in goods touched 120 billion euros in 2024, marking an increase of nearly 90 per cent over the past decade, while trade in services amounted to an additional 60 billion euros.

- ANI

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Reader Comments

P
Priya S
Hoping this "mother of all deals" actually benefits our farmers and small businesses, not just the big corporates. The government must ensure a balanced agreement.
V
Vikram M
Excellent! India being invited as chief guest for Republic Day is a matter of pride. It shows our growing global stature. Let's hope the summit yields concrete results on trade and security.
S
Sarah B
As someone working in the tech sector, I'm keenly watching this. Easier mobility for skilled professionals should be a key part of any agreement. It's a win-win for innovation.
R
Rohit P
While the strategic partnership is welcome, we must be cautious. The EU has stringent regulations on data privacy and environmental standards. Our industries need time and support to adapt, not just market access.
K
Karthik V
"Derisk the world economy" - Jaishankar Sir put it perfectly. In this unstable global order, India-EU partnership is not just beneficial, it's essential for stability. Great to see our diplomacy at work.
M
Michael C
The trade numbers are impressive – 120 billion euros! Imagine the potential if barriers are reduced. This could be a game-changer for sectors like pharmaceuticals, IT, and automotive.

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