European Commission President Ursula von der Leyen hailed a "successful India" as a cornerstone of global stability, prosperity, and security during her attendance at India's 77th Republic Day celebrations in New Delhi.

As chief guest alongside European Council President Antonio Costa, von der Leyen described the honour as "of a lifetime." Her presence underscored the deepening India-EU strategic partnership amid shifting global dynamics.

The remarks came on the eve of high-level summit talks with Prime Minister Narendra Modi, scheduled for Tuesday. These discussions aim to finalise a "historic" free trade agreement (FTA) between India and the 27-nation European Union.

Von der Leyen emphasised on X (formerly Twitter): "A successful India makes the world more stable, prosperous and secure. And we all benefit." This statement aligns with Europe's quest for reliable partners in Asia's growth engine.

Just days prior, at the World Economic Forum in Davos, she dubbed the impending deal the "mother of all deals." It promises a market of two billion people, representing nearly a quarter of global GDP.

Such a pact offers Europe a "first-mover advantage" with one of the world's fastest-growing economies. Von der Leyen highlighted Europe's intent to engage with "growth centres of today and the economic powerhouses of this century."

Bilateral trade in goods reached USD 135 billion in the financial year 2023-24, making the EU India's largest trading partner. The FTA revives negotiations first launched in 2007, stalled in 2013, and relaunched in 2022.

Key concessions include India's plan to slash tariffs on EU-imported cars from up to 110% to 40% immediately for select models priced over 15,000 euros (USD 17,739). These will drop further to 10% over time.

This opens India's market to European automakers like Volkswagen, Mercedes-Benz, and BMW, fostering competition and technology transfer in the automotive sector.

Beyond autos, the deal spans goods, services, and investments, potentially boosting India's "Make in India" initiative. It could enhance supply chains for critical sectors like semiconductors, renewables, and defence manufacturing.

For India's aerospace and defence industries—key focuses for entities like HAL and DRDO—the FTA signals opportunities in joint ventures. European firms may collaborate on avionics, engines, and next-generation platforms, reducing import dependencies.

Geopolitically, the pact counters-balance China's dominance in global trade. A stable India, with its indigenous capabilities in fighters like Tejas and missiles via DRDO, aligns with EU interests in Indo-Pacific security.

Von der Leyen's visit coincides with India's Republic Day parade, showcasing military prowess including HAL's TEJAS MK-2 prototypes and Akash-NG systems. This display reinforces India's role as a net security provider.

Prime Minister Modi's tribute at the National War Memorial preceded the event, evoking shared values of democracy and resilience. EU leaders' participation symbolises mutual commitment to a rules-based order.

Economically, the FTA could accelerate India's defence exports, already growing under Atmanirbhar Bharat. Partnerships with European giants like Airbus and Safran may materialise in co-production deals.

Challenges remain, including non-tariff barriers and data localisation disputes. Yet, resolution promises a transformative shift, elevating India-EU ties to comprehensive strategic levels.

As negotiations conclude, this "mother of all deals" positions India as Europe's gateway to Asia. It bolsters a multipolar world where a rising India ensures stability amid geopolitical flux.

Agencies