Republic Day 2026: EU Leaders Arrive, India Pushes for Landmark FTA Deal

• India invites European Commission President Ursula von der Leyen and European Council President António Costa as Republic Day 2026 chief guests.
• The key objective is to finalize the long-pending Free Trade Agreement (FTA) between India and the EU.
• The historic FTA deal is anticipated to be sealed at the India-EU Summit on January 27, following accelerated negotiations.
• Major sticking points include the EU's Carbon Border Adjustment Mechanism (CBAM) and market access demands from both sides.
• CBAM, effective January 1, is an EU carbon tax on imports like steel, which India opposes due to potential export impact.

Why It Matters: India's Republic Day 2026 invitation to EU leaders aims to finalize a crucial Free Trade Agreement.