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India–EU Trade Pact Nears Finish Line Ahead of Republic Day Diplomacy

New Delhi: India and the European Union are gearing up for a decisive diplomatic moment as both sides prepare to advance a long-pending Free Trade Agreement (FTA) during the 16th India–EU Summit, scheduled for January 27. The talks will take place as senior EU leaders arrive in New Delhi to attend India’s 77th Republic Day celebrations, signalling renewed momentum in bilateral ties.

The President of the European Council, Antonio Costa, and European Commission President Ursula von der Leyen will be on a three-day state visit to India from January 25 to 27, at the invitation of Prime Minister Narendra Modi. In addition to being the chief guests at the Republic Day parade, the two leaders will co-chair the India–EU Summit alongside the Prime Minister.

Their itinerary also includes meetings with President Droupadi Murmu, as well as restricted and delegation-level discussions with senior Indian ministers and officials. An India–EU Business Forum is expected to be held on the sidelines, highlighting the economic significance of the visit.

Central to the summit agenda is the India–EU Free Trade Agreement, officially known as the Broad-based Trade and Investment Agreement (BTIA). Negotiations on the pact began in 2007 but remained stalled for several years before being formally revived in 2022, driven by shifting global supply chains, geopolitical realignments, and a renewed push for economic diversification on both sides.

The pace of talks accelerated significantly following Ursula von der Leyen’s visit to India in February 2025, when leaders agreed to fast-track negotiations. According to government sources, substantial progress has since been made, with 20 of the 24 negotiating chapters already concluded. Only a few complex issues remain unresolved, making the upcoming summit a critical window for final negotiations.

Officials have described Commerce and Industry Minister Piyush Goyal’s recent visit to Brussels as a key breakthrough, helping narrow differences and inject urgency into the process. While no formal announcement has been confirmed, both sides are optimistic that the agreement could be brought close to completion in the coming weeks.

If finalised, the FTA would mark one of India’s most comprehensive trade deals, significantly expanding market access, boosting investment flows, and strengthening strategic economic cooperation with the EU at a time of global uncertainty.

The Republic Day visit is therefore being viewed not just as a ceremonial engagement, but as a potential turning point in India–EU economic relations.

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