India and the European Union are close to finalising a Free Trade Agreement, which some have described as “the mother of all deals," European Commission President Ursula von der Leyen said on Tuesday, days before her trip to New Delhi.
"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. One that would create a market of 2 billion people, accounting for almost a quarter of global GDP," von der Leyen said addressing the World Economic Forum in Davos.
India-EU Summit
India and EU are set to announce the conclusion of negotiations on the much-awaited free trade agreement at the India-EU summit on January 27, 2026, mentioned a report by news wire PTI.
European Council President Antonio Costa and von der Leyen are scheduled to visit India from 25-27 January to grace the Republic Day celebrations as chief guests and hold summit talks with Prime Minister Narendra Modi.
“From Latin America to the Indo Pacific and far beyond, Europe will always choose the world. And the world is ready to choose Europe,” von der Leyen said on Tuesday.
The proposed FTA is being firmed up at a time amid increasing concerns over the Trump administration's trade and tariff policies which have impacted both India and the 27-nation EU.
EU-India trade ties
India and the European Union have been strategic partners since 2004.
The European Union is India's biggest trade partner with bilateral trade in goods recording USD 135 billion in the financial year 2023-24.
The proposed agreement is expected to bring a qualitative change in deepening the overall bilateral ties in a range of sectors as well at a time the world is witnessing trade disruptions in view of Washington's tariff policy, as per reports.
Beyond the FTA, the two sides are also likely to unveil a defence framework agreement and a broader strategic agenda at the summit. A joint comprehensive strategic vision for the 2026–2030 period is also expected to be announced, setting the roadmap for future engagement.
Negotiations on the India–EU free trade agreement were first launched in 2007 but were suspended in 2013 before being revived in June 2022.
