Moneycontrol PRO
Swing Trading 101
Swing Trading 101

‘Successful India makes world more stable’: Ursula von der Leyen a day ahead of ‘mother of all deals’

Von der Leyen is on a three-day visit to India and is scheduled to hold summit-level talks with Prime Minister Modi on Tuesday.

January 26, 2026 / 13:57 IST
PM Modi, centre, with von der Leyen, left, and President of the European Council Antonio Costa at the Republic Day parade on Monday.
Snapshot AI
  • EU leaders attended India's 77th Republic Day as chief guests for the first time
  • Von der Leyen called India's success vital for global stability and prosperity
  • India-EU summit may announce a historic free trade agreement after revived talks

European Commission President Ursula von der Leyen, on Monday, said that a "successful India" plays a vital role in making the world more "stable, prosperous and secure," as she attended India’s 77th Republic Day celebrations at Kartavya Path as a chief guest, alongside European Council President António Costa.

Calling her presence at the parade an “honour of a lifetime,” von der Leyen shared her remarks in a post on X, underlining India’s growing global influence.

“A successful India makes the world more stable, prosperous and secure. And we all benefit,” she wrote on the microblogging site.

Notably, this is the first time that the two top leaders of the European Union attended India’s Republic Day celebrations together as chief guests.

President Droupadi Murmu, Prime Minister Narendra Modi, members of the Union Cabinet, foreign diplomats and senior officials were present at the ceremony, which showcased India’s military capabilities, indigenous weapon systems and cultural diversity.

A small EU military contingent also participated in the parade.

Von der Leyen is on a three-day visit to India and is scheduled to hold summit-level talks with Prime Minister Modi on Tuesday. The visit coincides with the 16th India-EU Summit, where the two sides are expected to announce the conclusion of negotiations for a long-pending free trade agreement.

Ahead of her visit, von der Leyen described the proposed pact as a “historic” deal that could reshape economic ties between India and the 27-nation bloc.

Speaking at the World Economic Forum in Davos last week, she said the agreement would create a combined market of nearly two billion people, accounting for close to a quarter of global GDP.

“There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals,” she said, adding that the pact would give Europe a first-mover advantage in one of the world’s fastest-growing and most dynamic economies.

The European Union is currently India’s largest trading partner, with bilateral trade in goods valued at $135 billion in the 2023-24 financial year. Negotiations for the free trade agreement were first launched in 2007, suspended in 2013, and revived in 2022.

As part of the talks, India is reportedly considering sharp reductions in import duties on cars from the EU, potentially lowering tariffs to 40 percent from levels as high as 110 percent. Under the proposal, duties on a limited number of high-value vehicles would be cut immediately and phased down further over time, easing access to the Indian market for European automakers such as Volkswagen, Mercedes-Benz and BMW.

European Council President António Costa, who assumed office in December 2024, and von der Leyen are accompanied by a high-level EU delegation. Their joint presence at Republic Day underscores the diplomatic significance of the visit and signals the EU’s deepening engagement with India at a time when Brussels is recalibrating its global partnerships.

Moneycontrol News
first published: Jan 26, 2026 01:57 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347