On Monday, von der Leyen and Costa will attend India's 77th Republic Day as guests of honor – the first time in history that the heads of EU institutions have been invited to the ceremony. However, just before the start of the visit, it was not certain whether it would be possible to conclude the trade negotiations, which have been going on for 20 years. European Commission spokeswoman Paula Pinho emphasized that the talks are still ongoing and the outcome will be revealed only at the last minute.
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If an agreement is reached, it will be the second breakthrough in EU trade negotiations in less than two weeks. In mid-January, the European Commission signed an agreement with the South American bloc Mercosur.
India opens its market to European goods
An EU-India free trade agreement would create one of the largest economic exchange areas in the world, covering around two billion people. As in the case of the agreement with Mercosur, India is to abolish high tariffs on industrial goods from Europe, including cars. According to Reuters, the Indian government has proposed reducing the customs duty from 110 to 40 percent. for 200 thousand European cars with combustion engines per year.
President of the European Commission Ursula von der Leyen
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The conclusion of the negotiations would be a signal that the European Union, unlike the United States, is ready to tighten economic cooperation with partners around the world. Ursula von der Leyen pointed out last week that in the face of tariff threats from US President Donald Trump, There is a growing belief among EU Member States in the need to increase independence not only in terms of security, but also through the diversification of economic partners. In her opinion, trade agreements play a key role in this process.
Agriculture is a controversial point in negotiations
The spokeswoman for the European Commission did not want to say whether a possible trade agreement with India would cover the agricultural sector. A representative of one of the EU institutions pointed out that the liberalization of trade in agricultural products between the EU and Mercosur has caused a lot of controversy, which is why negotiations on this matter with India may be postponed until later. According to him, the situation is complicated on both sides of the negotiating table.
The importance of agriculture in the Indian economy, although it has been decreasing for years, still remains significant. According to World Bank data, in 2024 this sector was responsible for 16.3%. India's GDP. For comparison, in Poland it was 2.5 percent and in France 1.3 percent. GDP. It is estimated that about half of India's over 1.3 billion people make their living from agriculture.
Common goals despite differences
One of the challenges in the EU's relations with India is the different positions towards Russia. India has had close relations with Moscow for years, covering strategic sectors such as security and energy. After the war in Ukraine began in 2022, India increased imports of Russian energy raw materials and did not limit them even after the United States in August 2025 increased tariffs on these products to 50%.
An EU source admitted that there is not agreement between the EU and India on all issues. At the same time, it was emphasized that both entities share key goals and interests, such as a stable international order, reducing dependencies, developing diversified supply chains and making the most of digital and ecological transformation to strengthen competitiveness.
