EU and India are close to sealing a historic FTA. (Photo: X)
The European Union and India are on the brink of what European Commission President Ursula von der Leyen described as the “mother of all deals,” hinting at a historic Free Trade Agreement (FTA) just days ahead of her Republic Day visit to India and a high-profile summit with Prime Minister Narendra Modi.
Speaking at the World Economic Forum in Davos, von der Leyen said the two sides are “on the cusp of a historic trade agreement” that could reshape EU–India economic ties and create one of the world’s largest integrated markets.
Von der Leyen underlined the scale of the proposed agreement, noting that the combined EU–India market would represent nearly 2 billion people and account for almost a quarter of global GDP.
“I will travel to India. There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals,” she said during her address in Davos.
If finalised, the deal would mark a major breakthrough after years of stalled negotiations and signal a new phase in EU–India strategic and economic cooperation.
Negotiations for an EU–India Free Trade Agreement were first launched in 2007, but were suspended in 2013 due to differences over market access, tariffs, and regulatory standards. Talks were relaunched in June 2022, and have since gained momentum amid shifting global trade dynamics.
Officials from both sides are now expected to announce the conclusion of negotiations at the upcoming India–EU summit scheduled for January 27 in New Delhi.
European Commission President Ursula von der Leyen and European Council President Antonio Costa will be in India from January 25 to 27 as Republic Day chief guests, underscoring the political significance of the moment.
The leaders will hold summit talks with Prime Minister Narendra Modi, with the FTA expected to be the centrepiece of discussions.
The European Union is already India’s largest trading partner, with bilateral trade in goods touching $135 billion in the financial year 2023–24.
Von der Leyen said the agreement would give Europe a “first-mover advantage” in one of the world’s fastest-growing economies and deepen business ties with what she called the economic powerhouses of this century.
“Europe wants to do business with the growth centres of today,” she said, adding that the EU is keen to strengthen its presence across the Indo-Pacific region.
Von der Leyen’s comments come at a time of heightened global trade tensions, particularly with US President Donald Trump using tariffs as leverage against several countries, including India and European nations.
Referring to “geopolitical shocks,” she said Europe must seize the moment to build a more independent and resilient economic future.
“It is time to seize this opportunity and build a new independent Europe,” she said, stressing that shifting global alliances and trade pressures make deeper ties with India more urgent.
In addition to the FTA, India and the EU are expected to unveil a defence framework pact and a joint strategic agenda during the January 25–27 summit.
The two sides, who have been strategic partners since 2004, are also set to roll out a comprehensive strategic vision for 2026–2030, outlining cooperation across security, technology, climate action, and supply chains.
Von der Leyen also touched upon Europe’s ties with the United States, calling Americans “not just our allies, but our friends,” while warning against a trade or strategic rift.
On the Russia-Ukraine war, she said Europe remains committed to peace but insisted that Ukraine must be in a position of strength at any negotiation table.
“This must end. We all want peace for Ukraine,” she said, adding that the EU would work closely with Washington on diplomatic efforts.
If sealed, the EU–India Free Trade Agreement would be one of the most significant trade deals for both sides in decades, redefining economic engagement between Europe and one of the world’s fastest-growing major economies.
With leaders converging in New Delhi for Republic Day and summit talks, all eyes are now on whether the long-awaited “mother of all deals” will finally cross the finish line.
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Sofia Babu Chacko is a journalist with over five years of experience covering Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes that every voice matters, and journalism has a vital role to play in amplifying those voices. Sofia is committed to creating impact and shedding light on stories that truly matter. Beyond her work in the newsroom, she is also a music enthusiast who enjoys singing.
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