European Commission President Ursula von der Leyen described attending India’s 77th Republic Day celebrations as the “honour of a lifetime” while serving as chief guest alongside European Council President Antonio Costa. In a post on X, she emphasized that “a successful India makes the world more stable, prosperous and secure,” adding that everyone stands to benefit from India’s continued growth and strength. The leaders joined Prime Minister Narendra Modi in New Delhi for the ceremonial parade on January 26, 2026, marking a significant diplomatic highlight.

Von der Leyen arrived in India for high-level summit talks with PM Modi scheduled for Tuesday, where both sides are expected to formally announce the conclusion of negotiations on a comprehensive free trade agreement. Speaking at the World Economic Forum in Davos just days earlier, she described the prospective pact as a “historic trade agreement” and even the “mother of all deals.” The deal would unite markets of nearly two billion people, representing almost a quarter of global GDP, and give Europe first-mover advantage in one of the world’s fastest-growing regions.

The EU remains India’s largest trading partner, with bilateral goods trade reaching USD 135 billion in FY 2023-24. Negotiations for the free trade agreement originally began in 2007 but stalled in 2013 before being revived in 2022. As part of the emerging terms, India has agreed to significantly reduce tariffs on European car imports. Duties on select high-value vehicles (priced above €15,000) from the 27-nation bloc will drop immediately to 40% from as high as 110%, with further phased reductions to 10% over time. This opens greater market access for major European automakers including Volkswagen, Mercedes-Benz, and BMW.

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The anticipated agreement signals deepening strategic and economic ties between India and the European Union at a time of global uncertainties. Von der Leyen’s visit and remarks underscore Europe’s keen interest in partnering with dynamic growth centers like India to shape future economic powerhouses.

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