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New Delhi, 26 January. European Commission President Ursula von der Leyen attended the 77th Republic Day celebrations in the national capital on Monday amid ongoing talks on a historic India-EU trade deal. During this he said that a successful India makes the world more stable, prosperous and secure.

Von der Leyen, along with European Council President Antonio Costa, attended the parade as chief guests on duty. President Draupadi Murmu, Costa and von der Leyen were welcomed by Prime Minister Narendra Modi and Defense Minister Rajnath Singh on reaching the duty path in a traditional buggy. The President took the parade salute on the duty path.

Von der Leyen wrote on social media, ‘Being the chief guest at the Republic Day celebrations is the honor of a lifetime. A successful India makes the world more stable, prosperous and secure and we all benefit from it.

Von der Leyen’s statement came before the India-EU summit with PM Modi. New Delhi and Brussels are set to announce the end of negotiations on the long-awaited free trade agreement at the India-EU summit on January 27.

India-Expectations of change in EU relations

The European Union is India’s largest trading partner, with bilateral goods trade set to reach US$135 billion in FY 2023-24. Officials said the proposed free trade agreement could significantly enhance commercial engagement between the two sides.

The agreement is expected to mark a sea change in India-EU relations across several sectors, especially at a time when Washington’s tariff-based policies are hampering global commerce. The ambitious FTA is taking shape amid growing unease over US trade and tariff measures, which have hit both India and the 27-nation bloc.

India and the EU first started negotiations on an FTA in 2007, but the talks were halted in 2013 due to differences over the level of ambition. This process started again after almost a decade, in June 2022.

Import tariff on cars 110India can reduce it from % to 40%

According to the report of news agency Reuters, India can reduce the import tariff on cars coming from the European Union to 40 percent from the current maximum rate of 110 percent under a proposed Free Trade Agreement (FTA), which can be finalized by Tuesday.

Sources close to the talks said New Delhi has agreed to immediately reduce duty on a limited number of cars imported from the EU, provided their import price is more than about Rs 16.3 lakh (USD 17,739). It is expected that with time the tariff will further reduce to 10 percent.