EU Leaders Visit Delhi for Republic Day, Signal Progress on India-EU Trade Deal

European Commission President Ursula von der Leyen and European Council President Antonio Costa arrived in New Delhi on Sunday.

As India and the European Union push to finalise a long-awaited free trade agreement, capping nearly two decades of negotiations between the two economic blocs. Von der Leyen and Costa will be the chief guests at India’s Republic Day celebrations on Monday, ahead of the EU-India summit scheduled for Tuesday. Officials on both sides are expected to formally announce the trade pact at the summit, which has been described as the “mother of all deals.”

Confirming Costa’s visit, the European Council said on X that he was in New Delhi for the 16th EU-India summit, adding that the meeting would be an opportunity to build on the strategic partnership and strengthen cooperation across key policy areas.

‘On the cusp of a historic deal’

Ahead of the summit, von der Leyen signalled optimism about the outcome, saying, “We are on the cusp of a historic trade agreement,” underscoring the political and economic significance attached to the pact.

India, projected by the International Monetary Fund (IMF) to become the world’s fourth-largest economy this year, views the EU as a major source of investment, technology and job creation. For Brussels, India is an increasingly important market as European exporters grapple with US tariffs and Chinese export controls.

“The EU and India are moving closer together at a time when the rules-based international order is under unprecedented pressure through wars, coercion and economic fragmentation,” EU diplomat Kaja Kallas said ahead of the talks.

Key issues still under negotiation

While broad agreement has reportedly been reached, negotiations continue on a few sensitive issues, including the EU’s carbon border adjustment mechanism on steel exports, as well as safety and quality standards in the pharmaceutical and automotive sectors.

Analysts say the agreement could also pave the way for deeper strategic and defence cooperation, while facilitating greater mobility for Indian professionals in Europe.

Welcoming the EU delegation, Union Commerce and Industry Minister Piyush Goyal described the bloc as “an important economic and strategic partner for India.”

“We value our shared commitment to a mutually beneficial, ambitious India-EU FTA for the prosperity of our businesses and people,” Goyal said in a social media post.