EU Leaders in Delhi for Republic Day as India-EU Free Trade Talks Gain Pace

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 move closer to finalising a landmark free trade agreement after nearly two decades of negotiations.

Both leaders are the chief guests at India’s Republic Day celebrations on Monday and will take part in the 16th India-EU Summit on Tuesday, where officials are expected to formally announce the trade pact, described by sources as the “mother of all deals.”

The European Council said on X that Costa’s visit aims to build on the India-EU strategic partnership and strengthen cooperation across key policy areas.

‘Cusp of a historic agreement’

Ahead of the summit, von der Leyen said both sides were “on the cusp of a historic trade agreement,” underlining the momentum behind the talks.

India, projected by the International Monetary Fund (IMF) to become the world’s fourth-largest economy this year, sees the EU as a crucial partner for investment, technology transfer and job creation. For the European Union, India represents a key growth market as exporters face pressure from 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,” EU diplomat Kaja Kallas said ahead of the meeting.

Sticking points remain

Negotiations are still continuing on a few sensitive issues, including the EU’s carbon border levy on steel exports and regulatory standards in the pharmaceutical and automotive sectors.

Analysts say the agreement could also deepen strategic and defence cooperation and ease 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.