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EU and India announce sweeping free-trade agreement, aiming to cushion global trade shocks

India and the European Union have announced a long-negotiated free trade agreement billed as a major economic reset amid heightened tariff-driven uncertainty. The deal seeks to lower barriers on a broad basket of goods and services, expand market access, and deepen strategic alignment as both sides try to diversify risk in a more volatile global trading environment.

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Republic Day spotlight on India–EU engagement as von der Leyen and Antonio Costa attend New Delhi parade

The presence of European Commission President Ursula von der Leyen and European Council President Antonio Costa at India’s Republic Day parade in New Delhi placed India–EU relations at the centre of the global optics on 26 January 2026. The visit was widely seen as a high-profile gesture as both sides look to expand cooperation on trade, technology and strategic issues.