India–EU Trade Deal Near Finalisation, Says EU Chief at Davos
- India–EU trade talks nearing conclusion, says EU chief at Davos
- Deal could cover nearly 25% of global GDP
- Von der Leyen to visit India for Republic Day and India–EU Summit
- Agreement seen as key to resilient, diversified global supply chains
GG News Bureau
Davos / New Delhi | 20th January : European Commission President Ursula von der Leyen has signalled that India and the European Union are close to sealing a long-awaited free trade agreement, describing it as a potentially “historic” deal that could reshape global trade and supply chains. Speaking at the World Economic Forum (WEF) in Davos, von der Leyen said negotiations had reached a decisive stage, with only limited work remaining.
“On the Cusp of a Historic Agreement”
Addressing global leaders, von der Leyen framed the proposed India–EU free trade agreement as part of Europe’s wider push for fair trade, strategic partnerships, and sustainable growth. “There is still work to do, but we are on the cusp of a historic trade agreement,” she said, noting that some observers have dubbed it the “mother of all deals.”
She underlined that the pact could create a combined market of nearly two billion people, accounting for around a quarter of global GDP, giving European companies early access to one of the world’s fastest-growing economies while offering India deeper integration with European markets.
India at the Heart of Europe’s De-Risking Strategy
Von der Leyen placed India at the centre of Europe’s effort to diversify supply chains and reduce over-dependence on limited suppliers, especially in strategic sectors such as clean energy, digital infrastructure, pharmaceuticals, and critical raw materials. Calling the Indo-Pacific an “economic powerhouse of this century,” she said Europe wanted stronger ties with today’s growth centres.
“Europe will always choose the world,” she said, adding that global partners were increasingly ready to choose Europe in return.
High-Profile Visit to New Delhi
Her remarks come just days ahead of a major diplomatic moment. Von der Leyen and European Council President Antonio Costa are scheduled to visit India from January 25 to 27, where they will serve as Chief Guests at India’s 77th Republic Day celebrations. During the visit, they will co-chair the 16th India–EU Summit with Prime Minister Narendra Modi and hold extensive talks with Indian leadership.
An India–EU Business Forum is also planned on the sidelines, reflecting strong interest from industry on both sides.
A Deal with Global Implications
If concluded, the agreement would rank among the largest and most ambitious trade deals globally, covering not just tariffs but also services, investment, digital trade, sustainability standards, and regulatory cooperation. While negotiators acknowledge that sensitive issues remain, von der Leyen’s strong political messaging suggests momentum is firmly on the deal’s side.
