Commerce Minister Piyush Goyal on Tuesday said the ambitious India-EU free trade agreement is likely to be implemented within the 2026 calendar year, hours after the announcement of the conclusion of negotiations for the historic trade pact.

Under the proposed deal, India plans to bring down peak import tariffs on EU-made cars to 40 per cent from the current levels of up to 110 per cent. This would be the biggest opening so far of India’s tightly protected automobile market.

The two sides are also set to finalise a strategic defence framework, including a Security and Defence Partnership, and launch talks on a Security of Information Agreement.

European Union leaders joined India's Republic Day parade as the guests of honour, a day before New Delhi and Brussels are expected to seal a long-awaited free trade agreement.

Ursula von der Leyen begins her India visit ahead of the EU-India Summit to strengthen bilateral ties and trade agreements.

Beyond the Republic Day celebrations, von der Leyen and Costa will represent the European Union at the 16th EU-India Summit on January 27.