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‘A successful India makes the world more secure’: EU chief ahead of historic trade deal

| @indiablooms | Jan 27, 2026, at 12:05 am

European Commission President Ursula von der Leyen on Monday said that a “successful India” contributes to a more “stable, prosperous and secure” world, as New Delhi and the European Union prepare to finalise a landmark free trade agreement.

Von der Leyen, who is on a three-day visit to India, attended the country’s 77th Republic Day celebrations as a Chief Guest, calling the experience an “honour of a lifetime.” She was joined by European Council President Antonio Costa, marking the first time two top EU leaders jointly attended India’s Republic Day event.


“A successful India makes the world more stable, prosperous and secure. And we all benefit,” von der Leyen said in a post on X.

 

She is scheduled to hold summit talks with Prime Minister Narendra Modi on Tuesday, where both sides are expected to announce the conclusion of negotiations on the long-awaited India-EU free trade agreement.

India-EU Trade Deal

Days before her visit, von der Leyen said India and the European Union were on the brink of a “historic trade agreement” that would create a market of nearly two billion people, accounting for almost a quarter of global GDP.

“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 while addressing the World Economic Forum in Davos last week.

She added that the agreement would give Europe a “first-mover advantage” in one of the world’s fastest-growing economic regions.

The European Union is India’s largest trading partner, with bilateral trade in goods reaching USD 135 billion in the 2023–24 financial year.

Trade negotiations between India and the EU were first launched in 2007 but were suspended in 2013 due to differences over market access and regulatory issues. Talks were revived in 2022.

As part of the proposed agreement, India is expected to significantly reduce import duties on cars from the EU. Reports suggest tariffs could be slashed from as high as 110% to 40%, with further reductions over time.

New Delhi has also agreed to immediately cut taxes on a limited number of European cars priced above 15,000 euros, improving market access for automakers such as Volkswagen, Mercedes-Benz, and BMW.

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