European Union leaders were feted as guests of honour at India’s Republic Day parade on Monday, a day before New Delhi and Brussels are expected to finalise a long-delayed free trade agreement, described by both sides as the “mother of all deals”, amid renewed tariff pressure from the US.
Military bands and horse and camel cavalry units paraded through the national capital, while fighter jets buzzed overhead and India's latest military hardware was put on display. The fanfare also featured Indian air defence systems -- including missiles and drones -- that were deployed in the four-day conflict with Pakistan last year.
"The occasion inspires us in our collective resolve to build a developed India," Prime Minister Narendra Modi said before the parade.
European Council President Antonio Costa and European Commission President Ursula von der Leyen are both in attendance before an EU-India summit Tuesday, when the two sides are widely expected to announce a landmark free trade deal accounting for nearly a quarter of global GDP.
Alongside the pact, both sides will also unveil a defence framework agreement and a broader strategic agenda.
Negotiations on a trade agreement have dragged on for more than a decade but gathered pace last year after US President Donald Trump’s tariffs prompted India and the 27-nation EU to fast-track talks.
Officials say the proposed agreement could significantly deepen ties across multiple sectors at a time of growing global trade disruption linked to Washington’s tariff policies.
The deal would be a boost for both Brussels and New Delhi as they seek new markets to offset US tariffs and Chinese export controls. While the EU views India as a key growth market, India sees Europe as a vital source of technology and investment to expand infrastructure and create jobs.
India and the EU have been strategic partners since 2004.
Talks on a free trade agreement began in 2007 but were suspended in 2013 over differences on market access, tariffs and regulation. Negotiations were revived in 2022 amid shifting global supply chains and geopolitical uncertainty.
India is on course to become the world’s fourth-largest economy this year, according to IMF projections. Trade in goods between India and the EU reached €120bn ($139bn) in 2024, up nearly 90% over the past decade, EU figures show. Trade in services totalled a further €60bn ($69bn).
Notably, Republic Day marks the adoption of India's post-independence constitution in 1950 with the parade staged along a colonial-era boulevard that also hosts important government buildings. The annual show is a colourful and tightly choreographed spectacle that also features floats from different states to highlight India's diversity.