European Commission President Ursula von der Leyen on Monday said that a “successful India” makes the world more “stable, prosperous, and secure,” highlighting New Delhi’s growing strategic and economic importance on the global stage. Her remarks came as she attended India’s 77th Republic Day celebrations as a chief guest during her three-day official visit to the country. Calling the occasion an “honour of a lifetime,” von der Leyen joined European Council President Antonio Costa at the Republic Day समारोह. “A successful India makes the world more stable, prosperous and secure. And we all benefit,” she posted on X.
« The mother of all trade deals »
We are closing in on the 🇪🇺🇮🇳 Free Trade Agreement.
See you soon in Delhi. pic.twitter.com/gfiLv2eEam
— Ursula von der Leyen (@vonderleyen) January 24, 2026
Her visit comes at a crucial moment, with India and the European Union poised to conclude a potentially historic free trade agreement (FTA), widely described by both sides as the “mother of all deals.”
Historic India-EU Trade Talks Ahead
Von der Leyen is scheduled to hold summit-level talks with Prime Minister Narendra Modi on Tuesday, with discussions expected to focus on trade, strategic cooperation, and geopolitical challenges. Days ahead of her visit, she had indicated that negotiations were nearing completion. Speaking at the World Economic Forum in Davos last week, von der Leyen described the proposed agreement as “historic,” noting that it could create a combined market of nearly two billion people, accounting for almost a quarter of global GDP.
“I will travel to India. There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals,” she said. She added that the pact would give Europe a first-mover advantage in one of the world’s fastest-growing regions and strengthen economic ties with what she described as the “economic powerhouses of this century.”
India-EU Trade Deal Momentum Builds
The European Union is currently India’s largest trading partner, with bilateral trade in goods reaching USD 135 billion in the 2023–24 financial year. Negotiations for the India-EU FTA were first launched in 2007 but were suspended in 2013 before being revived in 2022 amid rising global trade uncertainty. A free trade agreement between India and the EU is expected to be signed on Tuesday, January 27, 2026. The deal is expected to significantly boost India’s trade surplus with the EU, which could rise to USD 51 billion by 2031.
According to a research report released on Sunday by Emkay Global, a comprehensive FTA could increase the EU’s share in India’s total exports to around 22–23 percent by FY2031, up from 17.3 percent in FY2025. Although India currently accounts for only 0.8 percent of the EU’s export market, the agreement is becoming increasingly important for Europe as well.
Tariff Cuts On EU Cars Likely
As part of the negotiations, India is reportedly considering major tariff reductions on cars imported from the European Union. Currently, cars imported from the EU attract duties as high as 110 percent. According to a Reuters report citing two sources, the Indian government has agreed to immediately reduce tariffs on cars from the 27 EU nations to 40 percent, with a further reduction to 10 percent over time. The move would significantly improve access to the Indian market for European automakers such as Volkswagen, Mercedes-Benz, and BMW.
The sources said the information is highly confidential and subject to last-minute changes. Both the Indian Commerce Ministry and the European Commission declined to comment.
Global Trade Tensions Add Urgency
The rapid progress on the India-EU trade deal comes amid growing global trade tensions. The European Union recently decided to suspend its trade deal with the United States following disagreements over US President Donald Trump’s remarks on Greenland. Several EU countries openly criticized Trump’s stance, prompting him to announce a 10 percent tariff on imports from eight EU countries starting February, with the possibility of further increases. Against this backdrop, the India-EU agreement is being seen as a strategic economic pivot for both sides, aimed at insulating trade ties from global volatility while deepening cooperation between two of the world’s largest economies.
