New Delhi, Jan 15 (PTI) Top European Union leaders Antonio Costa and Ursula von der Leyen will grace India's Republic Day celebrations and the two sides are set to seal the much-anticipated free trade deal on January 27 amid increasing concerns over Washington's trade and tariff policies.

With the world order looking wobbly, the European Union (EU) and India are expected to look at forging a broader global agenda during the three-day visit of Costa and von der Leyen to New Delhi beginning January 25.

The European Union is India's biggest trade partner with bilateral trade in goods recording USD 135 billion in the financial year 2023-24. The free trade agreement is expected to significantly enhance trade ties.

At the invitation of Prime Minister Narendra Modi, President of the European Council, Antonio Luis Santos da Costa and President of the European Commission Ursula von der Leyen will be on a state visit to India from January 25-27 as the chief guests at the 77th Republic Day celebrations, the external affairs ministry said on Thursday.

It said the leaders will also co-chair the 16th India-EU Summit on January 27.

Every year, India invites world leaders to attend its Republic Day celebrations.

Top sources said the two sides are expected to seal the proposed free trade pact at the summit.

The proposed agreement is expected to bring a qualitative change in deepening the overall bilateral ties in a range of sectors as well at a time the world is witnessing trade disruptions in view of Washington's tariff policy.

Besides firming up the free trade agreement, the two sides are likely to unveil a defence framework pact and a strategic agenda at the summit.

India and European Union are strategic partners since 2004. The 15th India-EU Summit was held virtually in July, 2020.

"Bilateral ties have expanded and deepened across a wide range of areas, particularly following the historic visit of EU College of Commissioners to India in February 2025," the ministry said in a statement.

"The participation of EU leaders as Chief Guests at the 77th Republic Day and the 16th India-EU Summit will further deepen the India-EU Strategic Partnership and advance collaboration in priority areas of mutual interest," the ministry said in a statement.

The new strategic agenda, likely to be adopted at the summit, identifies five areas of shared interest that include security and defence, connectivity and global issues, prosperity, sustainability, technology and innovation.

Beyond the bilateral dimension, the new strategic agenda highlights EU-India joint engagement on global issues and with third partners, reflecting India's growing global influence.

Under the defence pillar, the document identified maritime security, cyber defence, and counterterrorism as areas to expand cooperation.

The new strategic agenda also emphasised strengthening regional connectivity initiatives, such as the India-Middle East-Europe Economic Corridor (IMEC) and advances Global Gateway and EU-India trilateral cooperation. PTI MPB KVK KVK

India-EU free trade agreement to be sealed at the summit, paired with a strategic agenda and defence cooperation. Expected India-EU free trade agreement to be finalised at the India-EU Summit on January 27 to deepen bilateral trade ties, accompanied by a new strategic agenda and a defence framework pact identifying five priority domains and expanded cooperation on maritime security, cyber defence, counterterrorism, regional connectivity initiatives including the India-Middle East-Europe Economic Corridor, Global Gateway alignment, and trilateral engagement with third partners.