Explained : India courts EU at Republic Day as trade deal nears and Its Impact

Explained: This article explains the political background, key decisions, and possible outcomes related to Explained : India courts EU at Republic Day as trade deal nears and Its Impact and why it matters right now.

India celebrated its 77th Republic Day on Monday in the presence of EU leaders who were invited as the guests of honor.

The Republic Day parade included a massive display of military capacity, featuring missiles, aircraft, and newly formed units and weapons systems used during the conflict with Pakistan last year following an attack in India-administered Kashmir.

The parade also included military bands and horse and camel cavalry units.

 India's "Akash" missiles at display during the Republic Day parade
India’s defense capacity was showcased during the Republic Day parade Image: Adnan Abidi/REUTERS

“The occasion inspires us in our collective resolve to build a developed India,” Prime Minister Narendra Modi said before the parade.

The Republic Day was organized around the central theme “150 Years of Vande Mataram,” commemorating India’s national song.

What did the EU leaders say?

European Council President Antonio Costa and European Commission President Ursula von der Leyen were the official guests at the Republic Day celebrations.

They are also attending an EU-India summit, where they are expected to announce a breakthrough on a landmark free trade deal, along with a security partnership.

Indian PM Narendra Modi and EU Chief Ursula von der Leyen
Antonio Costa and Ursula von der Leyen were the guests of honor at India’s 77th Republic Day celebrationsImage: Adnan Abidi/REUTERS

“It is the honor of a lifetime to be Chief Guests at the Republic Day celebrations. A successful India makes the world more stable, prosperous and secure,” Von der Leyen wrote in a post on social media on Monday. 

She added that India and Europe have made “a clear choice”: “The choice of strategic partnership, dialogue and openness.”

Costa posted: “Honored to arrive in New Delhi for the 16th #EUIndia Summit, on the eve of India’s 77th Republic Day. Celebrating a strong and growing EU-India partnership — from trade and security to the clean transition and vibrant people-to-people connections.” 

The deal was a work-in-progress for over a decade, but US President Donald Trump’s tariffs pushed India and the 27-nation EU to expedite their efforts in 2025.

India is set to become the world’s fourth-largest economy this year, according to International Monetary Fund projections.

India-EU trade in goods reached €120 billion ($139 billion) in 2024, an increase of nearly 90% over the past decade, according to figures from the European Union.

What did global leaders say?

Congratulating India on its 77th Republic day, Chinese President Xi Jinping on Monday called for strong regional partnerships between “good neighbors, friends and partners.”

Xi said that, over the past year, China-India relations have continued to improve and develop and are of “great significance for maintaining and promoting world peace and prosperity,” according to China’s official news agency, Xinhua.

French President Emmanuel Macron also extended his greetings, calling Modi his “dear friend.”

“What a wonderful memory of the #RepublicDay we shared together in 2024!” Macron wrote. “My dear friend Narendra Modi, dear Indian friends, my very best wishes on this great day of celebration. See you in February to continue building together!” 

Edited by: Wesley Dockery