New Delhi: As India’s 77th Republic Day parade unfolded along Kartavya Path on Monday morning, January 26, a small contingent of European Union (EU) personnel marched past the saluting base, marking the first time EU naval forces from operations Atalanta and Aspides have taken part in the ceremonial display.It was the the first time that the 27-member bloc had been invited as chief guest for the Republic Day celebrations, with the European Union’s political and executive leadership seated alongside India’s top leadership on the dais.European Commission president Ursula von der Leyen said the display of EU flags, military staff and naval missions was a “powerful symbol” of deepening security cooperation, adding that it would culminate at Tuesday’s EU India summit with the signing of a Security and Defence Partnership.Thank you President Droupadi Murmu @rashtrapatibhvn and Prime Minister @narendramodi for inviting the European Union to participate in this year’s magnificent parade marking India’s 77th #RepublicDay.A spectacular celebration of India’s rich history and vibrant cultural… pic.twitter.com/Guf97hjGld— António Costa (@eucopresident) January 26, 2026The messaging was echoed across the EU delegation. EU foreign policy chief Kaja Kallas said the participation of EU naval personnel for the first time was intended to underline concrete cooperation in areas such as maritime security, cybersecurity and counterterrorism.Trade commissioner Maroš Šefčovič framed the moment in economic terms, calling the Republic Day invitation a fitting prelude to the conclusion of negotiations on what he described as an “ambitious” free trade agreement.Prime Minister Narendra Modi termed their presence to the strength of the partnership and “commitment to shared values”.“The visit will add momentum to the deepening engagement and cooperation between India and Europe across diverse sectors,” he posted on X.The summit is unfolding against a backdrop of volatile global geopolitics and economic uncertainty, especially triggered by US president Donald Trump. That uncertainty has pushed both India and the EU to look beyond traditional alliances and diversify strategic partnerships, particularly in trade and security, observers and officials say.The most concrete deliverable expected at the summit is the signing of the EU India Security and Defence Partnership, a political framework designed to elevate and formalise cooperation across security and defence. EU officials say the pact will broaden dialogue and coordination on issues such as maritime security, cyber threats, counterterrorism and hybrid challenges, while framing cooperation around shared interests.Unlike a treaty, such partnerships are non-legally binding political instruments that signal intent rather than enforceable obligations. They form part of the EU’s wider strategy of engaging like-minded partners beyond its borders and complement its internal defence structures under the Common Security and Defence Policy. This will the ninth such comprehensive partnership that EU has concluded globally, and the third in Asia after Japan and South Korea.Alongside this, the summit is expected to announce the launch of negotiations on a Security of Information Agreement, which would provide a legal framework for the exchange of classified information once concluded. EU officials have stressed that the agreement does not compel either side to share sensitive material, but ensures that when information is exchanged it is protected under agreed standards. Negotiations are expected to begin soon, with a tentative objective of concluding the agreement later in 2026.Trade will form the other major pillar of the summit. Both sides are expected to announce the conclusion of negotiations on the long pending EU India free trade agreement, though the deal will not be signed in New Delhi. Instead, it will move into post negotiation legal finalisation and ratification, including scrutiny by the European parliament and domestic procedures in India.Bilateral trade in goods between the EU and India is already substantial, valued at over 120 billion euros in 2024, with EU imports from India exceeding exports and both goods and services trade having more than doubled over the past decade.Under the agreement, both sides aim to reduce tariffs and non-tariff barriers, while attempting to reconcile EU climate and regulatory standards with India’s market access priorities. Climate related provisions, including explicit commitment to the Paris Agreement and sustainability commitments, have been among the most sensitive elements of the talks.India has agreed to cut tariffs on cars imported from the EU to 40 percent from levels as high as 110 percent, sources briefed on the negotiations told Reuters. The initial reduction will apply to a limited number of combustion engine vehicles priced above 15,000 euros, with duties set to fall further over time. Electric vehicles will be excluded from these reductions for the first five years to protect domestic investments by firms such as Mahindra and Mahindra and Tata Motors, the sources said.Beyond trade and defence, the summit agenda includes an agreement on mobility aimed at facilitating the movement of students, researchers, professionals and seasonal workers, while leaving decisions on numbers with individual EU member states. Leaders are also expected to reaffirm political support for the India Middle East Europe Economic Corridor, even as officials admit that concrete timelines and financing remain subject to regional developments.Differences over Ukraine remain the most persistent source of friction in the relationship. According to a briefing by the EU Institute for Security Studies, India’s decision to preserve ties with Moscow, avoid political condemnation and sharply expand energy imports has created sustained tension with Europe.The scale of this divergence is substantial. India increased Russian oil imports from a mere 2-3% of total crude imports before the 2022 invasion to 18-19% by 2024, eventually becoming the world’s largest importer of Russian oil by August 2024. By 2024 to 2025, India imported 35-40% of its oil from Russia.One of the most contentious dimensions concerns refined petroleum products. Under the EU’s 18th sanctions package, the bloc banned imports of petroleum products refined from Russian crude through third countries. Yet, this ban arrives after years of European refineries themselves purchasing Indian-refined Russian oil. According to data compiled in January 2026, refineries in India processing Russian crude exported 100 million barrels of refined products to EU markets in 2025, with India accounting for 61.2% of this total.In October 2025, as part of its 19th sanctions package, the EU sanctioned three India-based companies for “directly supporting” Russia’s military and industrial complex by “enabling the circumvention of export restrictions on computer numerical control machine tools, microelectronics, unmanned aerial vehicles and other advanced technology items”.India has responded forcefully to international criticism. In August 2025, following Trump’s tariff threats over Russian oil imports, India’s Ministry of External Affairs issued a statement noting that the EU conducted 67.5 billion euros in total trade with Russia in 2024, including record LNG imports of 16.5 million metric tonnes. US Treasury Secretary Scott Bessent told Politico that European countries were effectively “financing the war against themselves” by purchasing refined products made from Russian crude processed in Indian refineries, calling it “the ultimate act of irony and stupidity”. Bessent said “our virtue-signalling European allies refused” to impose tariffs on India over Russian oil purchases “because they wanted to sign this big trade deal with India”.EU officials have papered over this contradiction by appealing for a strategic viewpoint. Von der Leyen has consistently positioned India as a crucial actor in a multipolar world order, where India’s relationships with multiple centres of power, particularly Moscow, provide diplomatic channels unavailable to the West. As European officials noted, while they “don’t see eye-to-eye on everything,” both sides share core interests in maintaining a stable international order and a free and open Indo-Pacific.Meanwhile, the EU pursued the India-EU Free Trade Agreement throughout this period, with negotiations accelerating dramatically in 2025 to 2026.European officials explicitly acknowledged that the EU-India partnership was being strengthened in response to global disruptions created by US President Trump’s trade policies. According to the ISS Europa briefing, the relationship is shaped less by a common reading of the world than by the need to operate within the same contested environment.