'Successful India makes world stable': EU chief on Republic Day
What's the story
European Commission President Ursula von der Leyen on Monday attended the 77th Republic Day celebrations in New Delhi. She was the chief guest along with President of the European Council Antonio Costa. As she attended the event, Leyen wrote on X, "It is the honor of a lifetime to be Chief Guests at the Republic Day celebrations. A successful India makes the world more stable, prosperous and secure. And we all benefit."
Trade significance
EU chief's remarks at Republic Day celebration
The event was held at Kartavya Path, where President Droupadi Murmu took the salute after arriving in a traditional buggy with Costa and von der Leyen. Leyen's comments came ahead of her talks with Prime Minister Narendra Modi for an India-EU trade deal. The summit is expected to announce a landmark free trade agreement (FTA) between New Delhi and Brussels on January 27.
Economic impact
India-EU trade deal to boost commercial engagement
The European Union is India's largest trading partner, with bilateral goods trade reaching $135 billion in FY 2023-24. Officials believe that the proposed FTA could significantly enhance commercial engagement between India and the EU. The pact is expected to bring a qualitative shift in overall India-EU ties across multiple sectors, especially amid global commerce disruptions due to Washington's tariff-driven policies.
Negotiation progress
India-EU FTA negotiations and tariff reductions
India and the EU first started FTA negotiations in 2007, but talks were stalled in 2013 over differences on ambition levels. The process was revived in June 2022. According to a Reuters report, India is likely to cut import tariffs on EU cars to 40% from the current peak of 110% under a proposed FTA. New Delhi has reportedly agreed to lower duties on some EU-imported cars if their import price exceeds ₹16.3 lakh ($17,739).