EU council president arrives in India to seal trade pact

Antonio Costa, president of the European Council arrived in India on Sunday, marking the conclusion of nearly 20 years of negotiations between the economic giants as the EU and New Delhi attempt to finalize a free trade agreement.

The main attendees of this year’s Republic Day festivities in New Delhi on Monday are Costa and Ursula von der Leyen, president of the European Commission. On Tuesday, there will be an EU-India summit, where they intend to sign the “mother of all deals” agreement.

The EU Council stated on X that “President Costa is in New Delhi for the 16th EU-India summit taking place on Tuesday.”

“The summit will be an opportunity to build on the EU-India strategic partnership and further strengthen collaboration across key policy areas.”

The International Monetary Fund predicts that this year, India, the most populous country in the world, would have the fourth-largest economy in the world.

While the EU views India as a significant market for the future, New Delhi views the European Union as a vital source of investment and technology to quickly upgrade its infrastructure and generate millions of new employment for its citizens.

“We are on the cusp of a historic trade agreement,” Leyen said ahead of the summit.

According to EU statistics, bilateral commerce in goods reached 120 billion euros ($139 billion) in 2024, a roughly 90% increase over the previous ten years, while trade in services reached an additional 60 billion euros ($69 billion).

“The EU and India are moving closer together at the time when the rules-based international order is under unprecedented pressure through wars, coercion, and economic fragmentation,” stated EU top diplomat Kaja Kallas on Wednesday. The agreement would be a significant victory for Brussels and New Delhi, who both aim to open up new markets in the face of US tariffs and Chinese export restrictions.

The impact of the EU’s carbon border tax on steel exports, as well as safety and quality requirements in the automotive and pharmaceutical industries, are among the sticking points of the ongoing negotiations, according to people familiar with the talks.

After decades of relying on Moscow for essential military equipment, New Delhi has recently made an effort to reduce its reliance on Russia by expanding its own domestic manufacturing base and diversifying its imports. In comparison to the US, Europe is acting in the same way.