EU Chief Hails India’s Role in Global Stability at Republic Day

European Commission President Ursula von der Leyen attended India’s 77th Republic Day celebration on Monday, describing the occasion as an “honour of a lifetime.” She emphasized that a successful India contributes significantly to a more stable, prosperous, and secure world. Von der Leyen’s visit comes amid high expectations for a landmark trade agreement between India and the European Union that could reshape economic ties between the two regions.

India-EU Historic Trade Agreement Near Completion

The long-awaited free trade agreement between India and the 27-nation European Union is on the verge of conclusion. Von der Leyen, who is on a three-day visit to India, is scheduled to hold summit-level talks with Prime Minister Narendra Modi on Tuesday to announce the completion of negotiations. The proposed pact represents a historic milestone, creating a combined market of nearly two billion people and accounting for close to a quarter of global GDP. Originally launched in 2007, negotiations stalled in 2013 before being revived in 2022.

Market Access and Tariff Reductions

As part of the trade deal negotiations, India is considering significant tariff reductions on imported vehicles from the EU. The country may slash import duties on European cars from as high as 110 percent to 40 percent, substantially improving market access for major automakers including Volkswagen, Mercedes-Benz, and BMW. The European Union currently serves as India’s largest trading partner, with bilateral trade in goods valued at $135 billion in the 2023-24 financial year. This trade agreement aligns with the EU’s strategy to strengthen engagement with one of the world’s fastest-growing economies.