New Delhi: During the 77th Republic Day celebrations, Ursula von der Leyen, the President of the European Commission, made a noteworthy statement asserting that "a successful India contributes to a more stable, prosperous, and secure world, benefiting everyone."

This statement comes at a crucial time as negotiations for a historic Free Trade Agreement (FTA) between India and the European Union (EU) are nearing completion. Von der Leyen, along with European Council President Antonio Costa, attended the event on January 26, 2026, where they received a traditional welcome from President Droupadi Murmu.

Sources indicate that India has signaled a significant reduction in import duties on European cars. The current maximum tariff, which can reach up to 110%, is expected to be lowered to around 40%, with a potential gradual decrease to 10% for cars priced above approximately ₹1.63 million. This agreement is the culmination of negotiations that began in 2007, stalled in 2013, and have gained momentum again since June 2022.

In the fiscal year 2023-24, bilateral trade between India and the EU has reached $135 billion, making the EU India's largest trading partner. Experts are referring to this deal as the "mother of all deals," marking a significant step in global trade amidst U.S. tariff policies.

The India-EU summit scheduled for January 27, 2026, is anticipated to finalize this FTA, which is expected to be historically significant for both parties in strategic and economic terms. Von der Leyen emphasized that a successful India strengthens the entire world, calling it a lifetime honor.