This Week in Explainers: Why the India-EU trade pact is a big deal

On Monday (January 26), India will celebrate its 77th Republic Day. Like every year, there will be a grand military parade. This is the first R-Day since Operation Sindoor, India’s strikes on terror camps in Pakistan and Pakistan-occupied Kashmir in the aftermath of last April’s Pahalgham attack. As India showcases its military might — it is for the first time that the public will witness military assets in the sequence they would appear during actual combat.

The other showstoppers will be European Union leaders, the chief guests at the parade. Antonio Costa, president of the European Council, and Ursula von der Leyen, president of the European Commission, will be in India for a three-day visit, starting today (January 25).

After the R-Day celebrations, the leaders will be back to business. India and the European Union are set to conclude negotiations in the crucial free trade agreement that the two sides have been working on for nearly two decades now. This comes in the backdrop of Donald Trump’s trade policy pressures.

Meanwhile, India-US ties have been a seesaw. Donald Trump has unveiled the “Board of Peace”, before which he had invited India to join. However, New Delhi has stayed away from it, fearing that this committee would interfere in conflicts beyond Gaza.

Like the rest of the world, shaken by America’s many flip-flops, India is looking at strengthening ties with other allies. One of them is the UAE. Earlier this week, President Sheikh Mohamed bin Zayed Al Nahyan made a sudden visit to Delhi for only three hours. During this, he met Prime Minister Narendra Modi, who went to the airport to welcome the leader. The visit that comes amid heightened tensions in West Asia created quite a buzz in geopolitical circles.

As far as domestic politics goes, the BJP got its youngest president in Nitin Nabin. The 45-year-old assumed charge on Tuesday (January 20) in a swearing-in ceremony attended by PM Narendra Modi and other senior leaders. The Bihar leader’s appointment highlights a generational shift in the party.

In a heartbreaking story from India, Yuvraj Mehta, a 27-year-old techie, died after his car fell into a ditch. He was standing on his vehicle and calling for help for nearly two hours. And while police and firefighters reached the scene, none rescued him.

We talk about all this and more in our weekly wrap.

1. With Trump and his tariffs, it’s been an unpredictable year for trade. While the India-US trade deal remains in limbo, New Delhi has made progress in its ties with other allies. India and the European Union are all set to conclude negotiations for the landmark Free Trade Agreement (FTA) on Tuesday (January 27). This comes a day after Republic Day (January 26), where European Commission President Ursula von der Leyen and European Council President Antonio Costa are invited as chief guests.

At the recently concluded World Economic Forum in Davos, von der Leyen spoke about the agreement that some call “the mother of all deals”. Here’s why this
pact is historic.

2. It was a short but important visit. United Arab Emirates (UAE) President Sheikh Mohamed bin Zayed Al Nahyan was in India for about three hours. He landed in New Delhi, where PM Narendra Modi welcomed him. They carpooled and then held talks at 7, Lok Kalyan Marg on Monday (January 19). The two leaders agreed on a range of bilateral agreements and outcomes, from defence to space and LNG. We decode this
surprise visit that came at a time of rising tensions in West Asia.

3. US President Donald Trump unveiled his ‘Board of Peace’. However, India stayed away from the ceremony at Davos. New Delhi has received an invitation to join this committee, which was originally conceived to oversee the reconstruction of the Gaza Strip, reduced to rubble by Israel’s war. But now the body is seeking to resolve global conflict.

Here’s why
India has not joined this board yet.

4. Ahead of India’s 77th Republic Day, Firstpost gets rare exclusive access to Rashtrapati Bhavan to
first-hand witness a rehearsal of the President’s Bodyguard (PBG), the Indian Army’s most senior regiment.

Through an in-depth interview with its Commandant, Colonel Amit Berwal, this explainer reveals how elite riders and nearly 100 horses undergo 40-45 days of rigorous preparation to escort the President on Kartavya Path. From training on hard tarmac and slopes to noise conditioning for gun salutes, fly-pasts and cheering crowds, the feature details the intense discipline, skill and humane horse care that underpin one of Republic Day’s most iconic ceremonial moments.

5. PM Narendra Modi has a new “boss”. He is 45 and has been picked as the BJP’s youngest president. Nitin Nabin, whom Modi refers to as a “millennial”, took over from JP Nadda, who held the position since January 2020. Nabin, a product of the party’s youth wing, entered electoral politics in 2006 by winning a by-election from Patna West. The five-time MLA now represents the Bankipur constituency.
Here’s how he rose through the ranks.

6. Noida gave us the most heart-wrenching story of the week — the death of a young engineer.
Yuvraj Metha, 27, was returning home from work when his car fell into a water-filled pit dug for a commercial site. He called his father, who immediately informed the authorities. Police and the fire brigade rushed to the spot, but no one entered the pitch to help the man. He called for help for two hours and then drowned. But could his
death have been avoided?

7. Ahead of the February 1 Union Budget, the focus is on taxes and household incomes. In India, while several homes run with shared incomes of spouses, they file their taxes separately. The Institute of Chartered Accountants of India (ICAI) has proposed a novel idea – an optional joint tax filing for married couples. It is a practice followed in the US and Germany.

Under the proposed framework, the household’s combined income would be assessed under a distinct tax slab system. This could lower the tax liability for families where one spouse earns significantly more than the other. How helpful would this be?
We explain.

That’s our recommendation list of stories from India. You can find more such explainers
here. Have a good weekend and happy Republic Day.