Davos, Jan 20: India and the European Union are poised to conclude negotiations on a monumental free trade agreement during the upcoming India-EU summit on January 27.
European Commission President Ursula von der Leyen, speaking at the World Economic Forum in Davos on Tuesday, described the pending pact as a historic milestone that would unite two billion people into a single market.
The agreement, which some officials have termed the “mother of all deals,” is expected to govern a market accounting for nearly 25% of the global Gross Domestic Product. The announcement is scheduled to coincide with the visit of von der Leyen and European Council President Antonio Costa, who will attend India’s Republic Day celebrations as chief guests.
“I will travel to India. There is still work to do, but we are on the cusp of a historic trade agreement,” von der Leyen directly said during her televised address.
She noted that the deal would grant Europe a “first-mover advantage” with one of the most dynamic and fastest-growing continents in the world.
The European Union remains the primary trading partner for India, with bilateral goods trade reaching $135 billion in the 2023-24 financial year.
Beyond commerce, the summit is expected to produce a new defence framework and a strategic agenda for 2026-2030. This includes a Security and Defence Partnership (SDP) aimed at increasing interoperability and allowing Indian firms to participate in the EU’s “Security Action for Europe” program.
Negotiations for this pact originally began in 2007 but faced a long suspension starting in 2013 due to differing levels of ambition.
The process was successfully relaunched in June 2022.
The finalization comes at a time when both New Delhi and Brussels are navigating global trade disruptions and shifting tariff policies in Washington.
