EU Council President Arrives in India for Trade Deal

European Council President Antonio Costa arrived in India on Sunday as the European Union (EU) and New Delhi aim to finalise a free trade agreement, nearly two decades in the making. 

Costa and European Commission President Ursula von der Leyen are attending this year’s Republic Day celebrations in New Delhi on Monday, ahead of the EU-India summit on Tuesday, where both sides hope to conclude the pact, described in diplomatic circles as the “mother of all deals.”

The EU Council noted that Costa’s visit coincides with the 16th EU-India summit, which officials said will serve to strengthen the EU-India strategic partnership and deepen collaboration across key policy areas.

Leyen indicated ahead of the summit that the trade deal could be historic, with both Brussels and New Delhi looking to expand market access despite rising US tariffs and Chinese export restrictions.

“We are on the cusp of a historic trade agreement,” she said.

Bilateral trade in goods reached €120 billion ($139 billion) in 2024, up nearly 90 per cent over the past decade, with an additional €60 billion ($69 billion) in services, EU data showed.

Kaja Kallas, the EU’s top diplomat, said that the EU and India are drawing closer at a time when the rules-based international order is under pressure from wars, coercion, and economic fragmentation.

Sources familiar with the negotiations said discussions continue over issues such as the EU’s carbon border tax on steel exports, safety and quality standards in the pharmaceutical and automotive sectors.

India, which has historically relied on Russia for military hardware, is seeking to diversify its imports and expand domestic manufacturing, while the EU is pursuing similar strategies to reduce dependence on the United States.