Ursula von der Leyen Links India’s Growth to Global Stability Ahead of Mega Trade Agreement

Ursula von der Leyen, President of the European Commission, said on Monday that a “successful India” makes the globe more “stable, prosperous, and secure” ahead of the “historic” trade pact between New Delhi and the 27-nation bloc.

Von der Leyen, who is on a three-day visit to India, attended India’s Republic Day celebrations as a chief guest, describing it as a “honour of a lifetime.” Von der Leyen and European Council President Antonio Costa were the main guests during India’s 77th Republic Day celebrations.

Ursula von der Leyen wrote on X

“A thriving India improves the world’s stability, prosperity, and security. “And we all benefit,” von der Leyen wrote on X.

Von der Leyen is in India for a summit meeting with Prime Minister Narendra Modi set for Tuesday.

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 ↓ https://t.co/boeqFGv15Q

— Ursula von der Leyen (@vonderleyen) January 26, 2026

India-EU Trade Deal

At the India-EU meeting, the two sides are expected to declare the end of negotiations for the long-awaited free trade agreement.

Days before her travel to New Delhi, von der Leyen stated that India and the European Union were on the verge of signing a “historic trade agreement” that would result in a market of two billion people accounting for over a quarter of global GDP.

“I will travel to India. There is still work to be done. But we’re on the verge of a historic trade accord. Some refer to it as the Mother of All Deals. One that would generate a market of 2 billion people, accounting for about a quarter of global GDP,” she stated at the World Economic Forum in Davos on Tuesday.

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“Most importantly, it would give Europe a competitive advantage in one of the world’s fastest-growing and most dynamic regions.” ‘Europe intends to interact with today’s growth centers and the economic powerhouses shaping this century,’ she stated.

The European Union is India’s largest trading partner, with bilateral commerce in goods totaling USD 135 billion in fiscal year 2023-24.
The EU and India began negotiations for a free trade agreement in 2007, but the talks were terminated in 2013. The negotiations resumed in 2022.

India is apparently planning to reduce taxes on cars imported from the European Union to 40% from as high as 110%.

According to a report from the Indian government has agreed to immediately decrease the tariff on a limited number of cars imported from the 27-nation EU that cost more than 15,000 euros ($17,739). This will be reduced to 10% over time, easing European automakers’ access to the Indian market, including Volkswagen, Mercedes-Benz, and BMW.