Calling her presence at the Republic Day parade an “honour of a lifetime,” von der Leyen said India’s rise contributes directly to global stability. In a message shared on social media, she noted that India’s economic strength and democratic values play a critical role in shaping a secure and prosperous international order.
The statement reflects Europe’s growing strategic interest in India as global supply chains shift and geopolitical uncertainties rise.
India-EU Trade Deal Nears Historic Conclusion
The European Commission President is in India for a three-day visit ahead of the India-EU Summit scheduled with Prime Minister Narendra Modi. At the summit, both sides are expected to announce the conclusion of negotiations for a long-pending free trade agreement.
Earlier this month, von der Leyen said India and the EU were on the cusp of what she called the “mother of all trade deals,” creating a market of nearly two billion people and accounting for almost one-fourth of global GDP.
Boost for Trade, Investment and Jobs
The proposed trade agreement is expected to significantly expand market access for businesses on both sides. The European Union is already India’s largest trading partner, with bilateral goods trade reaching USD 135 billion in the 2023-24 financial year.
Negotiations for the agreement were first launched in 2007 but were suspended in 2013 due to differences over tariffs and regulatory issues. Talks resumed in 2022 amid renewed political will from both New Delhi and Brussels.
Tariff Cuts on European Cars
As part of the negotiations, India is reportedly planning to slash import tariffs on cars from the European Union to 40 percent from earlier levels of up to 110 percent. Over time, duties on a limited number of high-end vehicles could fall further to around 10 percent.
The move is expected to benefit European automakers such as Volkswagen, Mercedes-Benz, and BMW, while also encouraging technology transfer and manufacturing partnerships in India.
Strategic Partnership Beyond Trade
Officials on both sides have stressed that the India-EU relationship extends beyond commerce. Cooperation in clean energy, digital technology, climate action, and global security has emerged as a key pillar of the partnership.
India’s independent foreign policy and its role as a bridge between the Global South and developed economies have further strengthened its standing with European leaders.