EU and India Sign Landmark Trade Deal Following Red-Carpet Welcome in New Delhi

European Council chief Antonio Costa, whose family hails from Goa, was celebrated as ‘the Gandhi of Lisbon’ by Indian Prime Minister Narendra Modi. Photo: Sajjad Hussain

European Commission President Ursula von der Leyen and European Council President Antonio Costa received a red-carpet welcome in New Delhi on Tuesday as the European Union and India signed a landmark trade agreement aimed at deepening economic and strategic ties.

Standing alongside Indian Prime Minister Narendra Modi, von der Leyen hailed the pact as a partnership between «two giants» and described it as the best response to global economic and geopolitical challenges. The agreement is expected to cut or eliminate tariffs on nearly 97% of EU exports, improving access to India’s 1.4-bn-strong market for European goods ranging from cars and wine to food products.

The signing comes at a crucial moment for Brussels, which has faced weeks of tension with the United States and internal divisions over other trade deals. In contrast, Indian authorities rolled out an enthusiastic reception for the EU leaders, who were honoured guests at India’s Republic Day celebrations.

EU officials said the deal reflects Europe’s push to diversify trade partnerships and reduce reliance on traditional allies. Alongside the trade accord, the two sides also agreed to strengthen cooperation on security and defence, opening the door to potential joint production of European military equipment in India.

The agreement is seen as a diplomatic and economic boost for both sides, reinforcing the EU’s role as a stable trade partner and elevating India’s position in Europe’s evolving global strategy.

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