India and the European Union are "very close" to finalizing a Bilateral Trade Agreement, the government said. The EU leadership will visit India as chief guests for the 77th Republic Day on January 26, 2026, and hold the much-awaited EU-India summit the following day. Talks that began in 2007 and restarted in 2022 moved quickly during February 2025 after European Commission President Ursula Von Der Leyen's visit. The deal focuses on trade but will also upgrade the strategic partnership that started in 2004. Both sides will adopt a new EU-India strategic agenda, which includes cooperation in the Indo-Pacific region. António Costa, President of the European Council, said, "India is a crucial partner for the EU. Together, we share the capacity and responsibility to protect the rules-based international order. This meeting will be a key opportunity to build on our partnership and drive progress in our cooperation." Costa added that "Trade, security and defence, the clean transition and people to people cooperation will top the agenda of the discussions." The Ministry of External Affairs also stated that the EU leaders’ visit will deepen strategic ties and increase collaboration. Commerce Secretary Rajesh Agrawal said on January 15 that negotiation teams have "closed 20 out of 24 chapters completely." However, ongoing talks continue on a few remaining issues, mainly "sensitive agricultural" products. Agrawal clarified, "My sense is that, the official that has been quoted, said that sensitive agricultural issues on both sides are off the table, and I agree with her." Agricultural issues are sensitive since the EU's deal with MERCOSUR countries is under strain from protests by French farmers. The EU-MERCOSUR deal will be signed in Paraguay on January 17 but still needs European Parliament approval. French President Emmanuel Macron, under pressure from farmer protests, may raise concerns about agricultural market access with India during his visit to Delhi next month for the AI summit. France is watching talks closely, especially on items like wine, dairy, meat, and processed foods, seen as sensitive for India.