NEW DELHI: India and the European Union are close to finalising a long-pending trade agreement, with top EU leaders scheduled to visit New Delhi later this month for the Republic Day celebrations and the 16th India-EU Summit.
At the invitation of Prime Minister Narendra Modi, President of the European Council Antonio Luis Santos da Costa and President of the European Commission Ursula von der Leyen will be on a state visit to India from January 25 to 27. The two leaders will serve as Chief Guests at India’s 77th Republic Day celebrations and will co-chair the India-EU Summit on January 27.
Sources said both sides are very close to concluding a trade agreement and are exploring the possibility of finalising it before the leaders meet in New Delhi. However, there has been no official confirmation so far.
“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.” Antonio Costa, President of the European Council said ahead of the visit.
German Chancellor Friedrich Merz, who recently visited India, had also indicated that the India-EU trade pact could be signed by the end of January.
Negotiations on the India-EU trade agreement were re-launched in 2022 after remaining stalled for several years. Talks gathered pace after US President Donald Trump raised tariffs on multiple trading partners, including India, while a separate India-US trade deal collapsed last year due to a breakdown in communication between the two governments.
As guests of honour, Costa and von der Leyen will also attend the Republic Day Parade on January 26. This will be the first time European Union leaders participate as chief guests at the Republic Day Parade, reflecting the strengthening ties between India and the EU.
In October 2025, the Council of the European Union endorsed a new strategic EU-India agenda, focusing on prosperity and sustainability, technology and innovation, security and defence, connectivity, and global issues. Both sides agreed to fast-track negotiations after Modi and von der Leyen met last year, with the aim of concluding the trade deal in 2025.
Since then, the EU has signed trade agreements with Mexico and Indonesia, while India has finalised deals with the United Kingdom, Oman and New Zealand.
India and the European Union have been strategic partners since 2004. The last India-EU Summit was held virtually in July 2020, with relations deepening significantly after the visit of the EU College of Commissioners to India in February 2025. Trade between India and the EU touched €120 billion in 2024, making the bloc India’s largest trading partner in goods.