EU leaders Von der Leyen, António Costa to be chief guests at Republic Day 2026, says report

European Commission President Ursula von der Leyen and European Council President António Costa will be the chief guests at India’s Republic Day celebrations on January 26, according to a report by News18.

Prime Minister Narendra Modi and Ursula von der Leyen had agreed on a February deadline to finalise the FTA this year. Their visit will coincide with the India–EU Summit, where discussions are expected to centre on the proposed Free Trade Agreement, as both sides seek to move the long-pending deal forward.

These twin events highlight a renewed strategic and economic engagement between India and the EU at the highest levels.

Trade negotiators from India and the European Union are no longer optimistic they can finalise a trade agreement by the end of the year, with talks stuck on a few key issues like steel and automobiles, Bloomberg reported on December 12, citing sources.

The main sticking points seem to involve sensitive sectors such as automobiles and steel. Sources told Bloomberg the EU is pushing New Delhi to increase the quota of roughly 80,000 cars that can be exported to India at reduced tariffs. Meanwhile, India is seeking lower duties on certain steel products exported to the EU and greater flexibility regarding the bloc's carbon tax rules.

European Commission spokesperson Olof Gill noted that EU trade chief Maros Sefcovic visited India earlier this month to advance the negotiations, following a period of “intensive discussions” at the technical level.

The FTA has been under negotiation for almost two decades, but discussions gained renewed urgency this year after US President Donald Trump returned to the White House, raising tariffs and disrupting global trade.

Trump’s 50% tariff on Indian goods heavily impacted the country's export sectors, leading India to explore alternative markets.

European Commission spokesperson Olof Gill noted that EU Trade Commissioner Maros Sefcovic visited India earlier this month to advance negotiations, following a period of “intensive discussions” at the technical level.

Piyush Goyal said, ‘air is pregnant with possibilities’

Earlier on December 10, Commerce and Industry Minister Piyush Goyal said negotiations for the India-EU free trade agreement are progressing, and a rough outline of the pact has been prepared.

He said both sides are committed to an early conclusion of the deal.

“Ek free trade agreement ki motee-motee roop rekha taiyaar ho gayee hai (a rough outline of a free trade agreement has been prepared),” Goyal said.

When asked if an announcement is expected on the conclusion of the negotiations in January, the minister said: “I think the air is pregnant with possibilities”.

"I can say with certainty that both sides are committed for an early conclusion of the deal. Whether it happens in one month, next week or next month, we will wait and watch," he added.

India-EU FTA

In June 2022, India and the 27-nation EU bloc resumed negotiations for a comprehensive FTA (free trade agreement), an investment protection agreement and a pact on geographical indications after a gap of over eight years.

It was stalled in 2013 due to differences on the level of opening up markets.

India's bilateral trade in goods with the EU was USD 136.53 billion in 2024-25 (exports worth USD 75.85 billion and imports worth USD 60.68 billion), making it the largest trading partner for goods.

The EU market accounts for about 17 per cent of India's total exports, and the bloc's exports to India constitute 9 per cent of its total overseas shipments.

Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in other products like wine, spirits, meat, poultry, and a strong intellectual property regime.

Indian goods' exports to the EU, such as readymade garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact sails through.

The India-EU trade pact negotiations cover 23 policy areas or chapters, including trade in goods, services, investment, rules of origin, customs and trade facilitation, government procurement, dispute settlement, intellectual property rights, and geographical indications.

(With inputs from agencies)