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India and the European Union unveiled a series of major agreements at the 16th EU-India Summit in New Delhi, including the conclusion of negotiations on a long-awaited free trade agreement and strategic security and defense partnership.

Prime Minister Narendra Modi is hosting European Commission President Ursula von der Leyen and European Council President Antonio Costa for talks aimed at outlining a broader joint vision to navigate geopolitical uncertainty driven by changes in U.S. trade and security policies.

Trade, defense cooperation, clean transition, technology, and people-to-people ties are expected to dominate the agenda.

While in New Delhi, Presidents Costa and von der Leyen attended India’s 77th Republic Day celebrations on January 26, 2026, as chief guests, marking the first time European Union leaders have participated in the parade in this role.

The gesture was widely seen as a symbolic signal of the growing political and strategic weight of EU-India relations. “It is the honor of a lifetime to be Chief Guests at the Republic Day celebrations,” von der Leyen said. “A successful India makes the world more stable, prosperous, and secure. And we all benefit.”

Thank you for hosting us on Republic Day, President @rashtrapatibhvn.

स्नेहपूर्ण स्वागत के लिए आपका हार्दिक धन्यवाद।

Europe and India are the world’s largest democracies, committed to working together to shape a new global order.

This is why we are here to take our… pic.twitter.com/4qxqTIluL1

— Ursula von der Leyen (@vonderleyen) January 26, 2026

Antonio Costa echoed similar sentiments, underscoring India’s importance to Europe’s global outlook. “India is a crucial partner for the EU. Together, we share the capacity and responsibility to protect the rules-based international order. This meeting will be a key opportunity to build on our partnership and drive progress in our cooperation,” he said.

Free Trade Agreement

The centerpiece of the summit is the announcement of the conclusion of negotiations for the India-EU free trade agreement, a deal described by European officials as “historic” due to its scale and economic significance.

European Commission President von der Leyen said days before her visit that India and the EU were on the cusp of what she called “the mother of all deals,” one that would create a market of nearly two billion people and account for close to a quarter of global GDP.

“I will travel to India. There is still work to do. But we are on the cusp of a historic trade agreement,” she said in an address at the World Economic Forum in Davos. “And, crucially, that would provide a first-mover advantage for Europe with one of the world’s fastest-growing and most dynamic continents.”

India’s Commerce Secretary Rajesh Agrawal said the legal scrubbing of the FTA text is underway and that efforts are being made to complete the remaining processes and sign the pact at the earliest. According to officials, the agreement is expected to take effect next year.

The European Union is currently India’s largest trading partner, with bilateral trade in goods reaching $135 billion in the 2023–24 financial year. Negotiations for the FTA were first launched in 2007 but stalled in 2013 before being revived in 2022 amid renewed strategic interest on both sides.

As part of the deal, India is expected to significantly lower tariffs on cars imported from the EU. According to reports, tariffs could be reduced to 40% from levels as high as 110%, with further gradual reductions planned.

India has reportedly agreed to immediately lower taxes on a limited number of EU-made vehicles priced above 15,000 euros, with duties potentially falling to 10% over time. This move would ease access to the Indian market for European automakers such as Volkswagen, Mercedes-Benz, and BMW.

Strategic Security and Defense Partnership

Beyond trade, India and the EU are set to formalize a new security and defense partnership aimed at expanding cooperation in defense policy, industrial collaboration, and risk assessment.

According to a draft document seen by Reuters, the agreement will explore possibilities for Indian participation in European defense initiatives.

The partnership comes at a time when Europe is seeking to reduce its dependence on the United States and China while strengthening ties with key partners in Asia.

For India, the agreement represents a step toward deeper integration with European security frameworks and defense innovation efforts.

Officials say the defense pact will complement broader cooperation on international security risk assessments, public safety analysis, and protection of overseas interests, aligning with the EU’s evolving strategic autonomy agenda and India’s expanding global security footprint.

Broader Strategic Agenda

The summit builds on a new strategic EU-India agenda endorsed by the Council of the EU in October 2025. That agenda places emphasis on prosperity and sustainability, technology and innovation, security and defense, connectivity, and global governance.

In addition to trade and defense, discussions are expected to cover clean energy transition, digital technologies, supply chain resilience, and mobility arrangements designed to facilitate talent and professional exchanges between India and Europe.

Officials from both sides have described the relationship as entering a more mature phase, driven by shared concerns over global economic fragmentation, regional security challenges, and the future of multilateral institutions.

For both New Delhi and Brussels, the summit represents a pivotal moment. The combination of a sweeping trade deal, a defense partnership, and expanded cooperation frameworks signals a strategic recalibration driven by economic opportunity and geopolitical necessity.

As global power balances shift and traditional alliances face strain, India and the European Union appear increasingly aligned in their desire to shape a stable, rules-based international order through deeper economic and security ties.

A vivid display of India’s cultural mosaic unfolded at Kartavya Path earlier today. The Republic Day parade celebrated India’s cultural diversity, with vibrant performances and tableaux. pic.twitter.com/SmyTgiUJcp

— Narendra Modi (@narendramodi) January 26, 2026

EU Outreach Beyond India

Following his visit to New Delhi, European Council President António Costa is scheduled to travel to Vietnam on January 29, coinciding with the elevation of EU-Vietnam relations to a Comprehensive Strategic Partnership and the 35th anniversary of diplomatic ties.

Costa is expected to hold meetings with Vietnam’s top leadership, including State President Luong Cuong, Prime Minister Pham Minh Chinh, Communist Party General Secretary To Lam, and National Assembly Chairman Tran Thanh Man. He will also visit the Hanoi Metro Line 3 project, which is co-financed by the European Investment Bank.

“The European Union is committed to strengthening and deepening its ties with Vietnam, building on shared values and mutual goals,” Costa said. “For 35 years, our partnership has grown in depth and ambition. I am honored to travel to Vietnam to mark the upgrade of our relationship to a Comprehensive Strategic Partnership.”