India-EU to Finalise Free Trade Deal at 16th Summit as European Leaders Join 77th Republic Day Celebrations

New Delhi: India and the European Union are set to announce the conclusion of a much awaited Free Trade Agreement (FTA) and finalise a strategic defence partnership at the 16th India-EUSummit in New Delhi on January 27, 2026, as top EU leaders attended  India’s 77th Republic Day celebrations as chief guests.

The summit will be hosted by Prime Minister Narendra Modi and attended by European Council President António Costa and European Commission President Ursula von der Leyen, who were given a ceremonial welcome upon arrival. The two leaders attended the Republic Day Parade on January 26 as chief guests, underlining the growing strategic depth of India-EU ties.

External Affairs Minister S Jaishankar welcomed the leaders, calling it a great privilege to have them as chief guests for the 77th Republic Day celebrations.

I am confident that their upcoming discussions with Prime Minister Modi will open a new chapter in India-European Union relations, he added.

FTA at the centre of talks

The key outcome of the summit is expected to be the successful conclusion of the India-EU Free Trade Agreement, negotiations for which began in 2007 and were relaunched in 2022. European Commission President Ursula von der Leyen has termed  it as the “mother of all trade deals,”saying we are closing in on the  Free Trade Agreement.

Earlier she spoke at the World Economic Forum in Davos on January 20. “India and the European Union are on the cusp of a historic trade agreement that would create a market comprising two billion people accounting for almost a quarter of the global GDP. Europe wants to do business with the world’s fastest-growing and most dynamic economies. India is central to that future.

External Affairs Ministry spokesperson Randhir Jaiswal said India and the EU share a “partnership of trust and reliability,” adding that both sides are preparing to announce the Free Trade Agreement. He said the summit is expected to further deepen the India–EU strategic partnership.

Trade and economic ties

The EU is currently India’s largest trading partner in goods. In the financial year 2024-25, bilateral trade stood at around $136 billion, with India’s exports at $76 billion and imports at $60 billion. Officials say the FTA will boost trade and investment, strengthen supply chains and enhance market access for Indian businesses and professionals.

Besides the Free Trade Agreement, the summit is expected to deliver four key outcomes, including the signing of a security and defence partnership, an agreement to promote the mobility of Indian professionals, and the adoption of a Joint Comprehensive Strategic Agenda for 2026-2030.

Around 8 to 10 agreements are expected to be signed, covering trade, defence, technology, clean transition and people-to-people cooperation.

Leaders are also expected to adopt a joint strategic agenda focused on prosperity and sustainability, technology and innovation, security and defence, and connectivity and global issues, building on momentum in relations over recent years.

Shared global outlook

The summit takes place amid global economic and security uncertainty, including disruptions linked to recent U.S. trade and security policies under the Trump administration. Both sides are expected to discuss ways to safeguard multilateralism, strengthen strategic autonomy and coordinate responses to global challenges.

Von der Leyen said India and the EU are showing “another way is possible” in a fractured world, emphasising dialogue,strategic partnership, openness and mutual resilience.

As EU leaders are attending Republic Day and a major trade breakthrough in sight, the summit is being seen as a significant milestone in India-EU relations, marking a deeper strategic alignment at a time of global flux.

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Shoaibur Rahman

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