India-EU Trade Deal Nears Seal: Top Leaders Head to Republic Day

India is poised for a major diplomatic and economic breakthrough as European Council President António Costa and European Commission President Ursula von der Leyen arrive in New Delhi for a state visit from January 25 to 27, 2026. Invited by Prime Minister Narendra Modi, the duo will serve as chief guests at the 77th Republic Day celebrations on January 26, witnessing the grand parade, and co-chair the 16th India-EU Summit the following day. This marks the first time top EU leaders attend Republic Day as guests of honour, underscoring the deepening strategic partnership between the world’s largest democracy and the powerful 27-nation bloc.

At the heart of the visit lies the long-awaited Free Trade Agreement (FTA), also known as the Bilateral Trade Agreement (BTA). Commerce Secretary Rajesh Agrawal confirmed that both sides are “very close” to finalizing the pact, with 20 out of 24 chapters already closed after intense negotiations relaunched in 2022 and accelerated in 2025. Sensitive agricultural items have been excluded to facilitate progress, allowing focus on market access, tariffs, regulatory alignment, and industrial goods. The deal, if sealed at the January 27 summit, would be one of India’s largest trade pacts and a significant win for the EU in Asia.

The timing gains extra urgency amid global trade uncertainties, including US tariff policies under the new administration, prompting India to diversify partnerships. Bilateral goods trade already stands at over USD 135 billion, with the EU as India’s top trading partner. A comprehensive FTA promises to boost exports, attract investments, integrate supply chains in manufacturing, technology, and clean energy, while strengthening ties in defence, security, and sustainability.

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This high-profile engagement signals a new era in India-EU relations, blending ceremonial grandeur with substantive economic gains. As negotiators race to tie up loose ends, the Republic Day spotlight could herald a landmark agreement that reshapes global trade dynamics.

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