New Delhi, Jan 20 (NationPress) A significant milestone is on the horizon as India and the European Union (EU) are nearing the completion of a historic free trade agreement (FTA). The formal announcement is anticipated on January 27, right after the celebrations of Republic Day, which will feature the top EU leaders as chief guests.

Sources indicate that the India-EU summit set for January 27 will mark the successful finalization of FTA discussions. A joint document will be issued to confirm the conclusion of negotiations, which will then undergo the necessary legal procedures and require ratification by the European Parliament and Council.

Additionally, both parties are expected to sign a security and defense partnership agreement alongside a pact aimed at improving mobility for Indian professionals seeking employment within the EU.

European Council President Antonio Costa and European Commission President Ursula von der Leyen will be the distinguished guests at India’s 77th Republic Day festivities before co-chairing the summit.

This year’s Republic Day parade will witness a military contingent from the EU participating for the first time, underscoring the strengthening of bilateral ties.

The impending trade agreement is poised to be the largest India has ever engaged in, encompassing both goods and services with the 27-nation EU, a key destination for Indian exports. Commerce Minister Piyush Goyal has referred to it as the “mother of all deals,” highlighting its immense significance.

With a combined population nearing two billion, this agreement will connect two of the globe’s largest democracies amidst the economic uncertainties caused by US tariff issues and global geopolitical strife.

The EU stands as India’s foremost trading partner, with bilateral trade in goods reaching $135 billion in FY24. The FTA is projected to unlock further market access and economic synergies. However, discussions continue regarding sensitive topics such as the EU's Carbon Border Adjustment Mechanism (CBAM).

India is advocating for zero-duty access for its labor-intensive industries, including textiles, leather, apparel, gems and jewelry, and handicrafts.

Last week, Minister Goyal announced that negotiations for the trade agreement have reached their concluding stages.

Earlier this month, he visited Brussels to engage in high-level discussions with EU Trade and Economic Security Commissioner Maros Sefcovic, as part of efforts to establish a mutually beneficial India-EU FTA.

“During our discussions, we explored crucial areas of the proposed agreement and reiterated our commitment to a rules-based trading framework. Our goal is a modern economic partnership that protects the interests of farmers and MSMEs while integrating Indian industries into global supply chains,” Goyal stated.