European Commission President Ursula von der Leyen on Monday said that “a successful India makes the world more stable, prosperous and secure” as she attended the 77th Republic Day celebrations in the national capital, a day before India and the European Union are expected to announce the conclusion of a long-pending free trade agreement.
Von der Leyen, accompanied by European Council President Antonio Costa, attended the Republic Day parade as chief guests at Kartavya Path, where President Droupadi Murmu took the salute after arriving in a ceremonial buggy with the two European leaders.
In a post on X, von der Leyen wrote: “It is the honor of a lifetime to be Chief Guests at the Republic Day celebrations. A successful India makes the world more stable, prosperous and secure. And we all benefit”.
Her remarks came ahead of summit-level talks with Prime Minister Narendra Modi, during which New Delhi and Brussels are set to formally announce the conclusion of negotiations on the India-EU free trade agreement on January 27.
Also read: India's defence might on display at Kartavya Path
The European Union is India’s largest trading partner, with bilateral goods trade reaching USD 135 billion in the 2023–24 financial year. The agreement is expected to significantly expand trade flows and deepen cooperation across sectors.
Beyond trade volumes, the pact is expected to reshape broader India-EU engagement at a time when global commerce is facing disruptions from tariff-driven policies pursued by the United States.
Negotiations on the free trade agreement began in 2007 but were suspended in 2013 due to differences over the scope and ambition of the pact. Talks were revived in June 2022 after nearly a decade-long pause.
Earlier on Monday, a Reuters report said India is likely to sharply cut import duties on European cars under the proposed agreement, reducing tariffs to 40 per cent from the current peak of 110 per cent, with further reductions to 10 per cent over time.
According to sources familiar with the negotiations, New Delhi has agreed to immediately lower duties on a limited number of EU-imported cars priced above Rs 16.3 lakh, or about USD 17,739.
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