Day celebrations next Monday. Beyond state banquets and ceremonial pomp, the two leaders will have a more pressing item on their agenda: advancing free trade talks with Asia’s third-largest economy.

The visit comes at a particularly challenging geopolitical moment for Europe. US President Donald Trump had threatened to escalate his trade war with European allies over their opposition to a proposed US takeover of Greenland, before later backing off.

The choice of guests also carries an important diplomatic message from India. New Delhi is accelerating strategic and trade ties with the rest of the world as the impasse over Washington’s 50 percent tariffs on Indian goods spills into the new year. “It sends a signal that India maintains a diversified foreign policy … and that it is not beholden to the whims of the Trump administration,” Chietigj Bajpaee of the London-based Chatham House think tank told the BBC.

Some reports suggest the deal could be announced as early as 27 January, when leaders from both sides meet for a high-level summit. Both von der Leyen and India’s Trade Minister, Piyush Goyal, have described it as the “mother of all deals,” underscoring the importance they place on concluding negotiations that are nearing the finish line after nearly two decades of hard bargaining.

The pact would be India’s ninth free trade agreement in four years, following a string of deals with the UK, Oman, New Zealand and other countries. For Brussels, it would come on the heels of recently concluded trade agreements with the Mercosur bloc, as well as with Japan, South Korea and Vietnam.

“Both sides are now seeking reliable trade partners, as geopolitical threats have created a tumultuous environment for commerce. The urge is equally strong — for India to offset US tariff pressures, and for the EU to reduce its trade dependence on China, which it considers unreliable,” says Sumedha Dasgupta, senior analyst at the Economist Intelligence Unit. The deal would also mark a “continuing and significant effort to shed India’s notoriously protectionist carapace,” she adds. (BBC)