Republic Day 2026 Chief Guests: EU President Ursula von der Leyen and Antonio Costa will be the chief guests on Republic Day 2026. This visit will coincide with the India-EU summit, which aims to finalize a Free Trade Agreement (FTA). Both sides will seek to strengthen strategic and economic ties by addressing key issues such as carbon tax (CBAM) and market access.

European Commission President Ursula von der Leyen and European Council President Antonio Costa will be the chief guests at India's Republic Day celebrations on January 26. (File Photos: Reuters)

India has made a major diplomatic move for Republic Day in 2026. European Commission President Ursula von der Leyen and European Council President Antonio Costa Chief Guest on 26th January.This isn't just a ceremony; it's a larger purpose: finalizing a Free Trade Agreement (FTA) between India and the European Union (EU). The two sides are expected to seal this historic deal at the India-EU Summit on January 27th. Piyush Goyal and EU officials are working tirelessly to bring this agreement, which has been pending for decades, to fruition.

Why has India invited only two EU stalwarts on Republic Day?

India's invitation to the EU's top leadership on Republic Day is part of a deliberate strategy. This move clearly demonstrates New Delhi's intention to elevate its diplomatic and economic relations with Europe to a new level.

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Relations between the two sides have been on an upswing since the EU Commissioners' visit to India in February 2025. Now, the arrival of two prominent EU figures together in India will send a significant message to the world. This visit could prove to be a game changer in promoting trade, defense, technology, and people-to-people exchanges.

How will the Free Trade Agreement (FTA), which has been stuck for years, get back on track now?

• Negotiations on a Free Trade Agreement (FTA) between India and the European Union have dragged on for quite some time. But now it appears that a breakthrough is on the horizon. Negotiations resumed in New Delhi on December 8th.
• According to a Moneycontrol report, both sides want to finalize the deal by the end of this year or before the January summit. Commerce Minister Piyush Goyal is leading the Indian delegation.
• On the EU side, Trade Director General Sabine Weyand is leading the charge. This is her second visit to Delhi in a month, demonstrating the EU's seriousness about this deal.

What are India's concerns on EU's carbon tax and steel exports?

Even though negotiations are in the final stages, some issues remain. The biggest issue is the European Union's Carbon Border Adjustment Mechanism (CBAM), which comes into effect on January 1st.

India has strongly objected to this. If implemented, it could lead to heavy taxes on steel, aluminum, and other carbon-intensive goods exported from India to Europe. Furthermore, the EU is demanding market access for its cars and steel in India. India, meanwhile, wants relaxation in European regulations for its services sector. It remains to be seen whether a consensus can be reached on these issues before the January 26 parade.

What is CBAM?

CBAM, or "Carbon Border Adjustment Mechanism," is a new rule in the European Union. Under this, goods (such as iron and steel) that produce high carbon emissions will be subject to additional taxes in Europe. India is opposing this policy, citing concerns that it will make Indian goods more expensive in Europe and impact exports.

 PC: Hindi News18