European Commission President Ursula von der Leyen stated on Monday that a successful India contributes to greater global stability, prosperity, and security. Von der Leyen's remarks came as India and the European Union (EU) are on the verge of finalizing a long-awaited Free Trade Agreement (FTA), described by both sides as a historic deal.

Von der Leyen, along with European Council President Antonio Costa, attended India's 77th Republic Day celebrations in New Delhi as chief guests. This marks the first time that two top leaders of the EU have attended India's Republic Day celebrations as chief guests. Following the parade, Von der Leyen conveyed on social media that it was an honor of a lifetime to be chief guests at the Republic Day celebrations and that a successful India benefits the entire world.

The EU is currently India's largest trading partner, with bilateral trade in goods reaching $135 billion in the fiscal year 2023-24. Negotiations for the FTA, which were initially launched in 2007, were revived in 2022 after a long pause. Both sides are now pushing for an early conclusion to what Von der Leyen has called the "mother of all deals". Speaking at the World Economic Forum in Davos recently, she said the proposed market could create a market of around two billion people, accounting for nearly a quarter of global GDP.

In addition to the FTA, India and the EU are also expected to sign a security and defence partnership, which von der Leyen described as a likely game-changer. A mobility agreement is also expected to be adopted, along with a 2026-2030 joint comprehensive strategic agenda.

The deepening of ties between India and the EU reflects a strategic calculation, with both sides seeking to diversify supply chains and reinforce global influence. Engagement with India allows the EU to reinforce its global influence without being drawn into bloc-based rivalries. The EU views India as a pivotal geopolitical partner in an emerging multipolar world.

The India-EU relationship rests on shared values and principles, including democracy, rule of law, a rules-based international order, and commitment to effective multilateralism. Ties encompass a broad spectrum, including trade and investment, security and defence, climate action and clean energy, digital transition, connectivity, science and technology, and people-to-people exchanges.