India, EU push for free-trade deal amid tensions over US tariff

Business Friday 23/January/2026 05:21 AM
By: Agencies
India, EU push for free-trade deal amid tensions over US tariff

India and the European Union are stepping up efforts for a free-trade agreement as New Delhi prepares to host the bloc’s top leaders this month. Both sides are showing signs of urgency amid mounting pressure from US tariffs and a shifting global order.

European Commission President Ursula von der Leyen at the World Economic Forum on Tuesday, said she would be travelling to India after the conference, adding that the two sides were “on the cusp of a historic trade agreement” that could be “the mother of all deals”.

Both von der Leyen and European Council President Antonio Costa will attend India’s Republic Day celebrations on January 26, followed by an EU-India summit the next day where they will hold talks with Indian Prime Minister Narendra Modi, Foreign Minister Subrahmanyam Jaishankar and other top officials.

“The political signalling from both sides has been unusually strong, with leaders openly calling it ‘historic’ and timing the summit with Republic Day for maximum impact,” said Srinivaasan Balakrishnan, director of strategic engagements and partnerships at Delhi-based think tank Indic Researchers.

Geopolitical pressure from US trade uncertainty, as well as a realignment of EU supply chains, had created urgency on both sides, he added.