At the World Economic Forum in Davos on Tuesday, European Commission President Ursula von der Leyen indicated that India and the European Union are on the verge of finalizing a landmark trade agreement, which she described as “the mother of all deals.” Speaking to global leaders, Von der Leyen framed the potential India-EU free trade pact as a key part of Europe’s broader strategy to prioritize fair trade, partnership over isolation, and sustainability over exploitation.
The agreement is expected to create a combined market of around two billion people, accounting for nearly a quarter of global GDP, and providing European companies with early access to one of the world’s fastest-growing regions. Von der Leyen emphasized that the EU aims to diversify supply chains, reduce over-reliance on limited suppliers, and strengthen cooperation in strategic sectors such as clean technologies, digital infrastructure, pharmaceuticals, and critical raw materials.
Highlighting India’s growing economic influence in the Indo-Pacific, Von der Leyen said, “Europe wants to do business with the growth centres of today and the economic powerhouses of this century.” She also confirmed her upcoming visit to India next week, which is expected to give a political boost to the trade negotiations.
From January 25 to 27, Von der Leyen and European Council President Antonio Costa will attend India’s Republic Day celebrations and co-chair the 16th India-EU Summit alongside Prime Minister Narendra Modi. An India-EU Business Forum will also provide industry leaders a platform to explore new trade and investment opportunities.
The proposed deal, if concluded, would be one of the world’s largest and most ambitious, covering tariffs, services, digital trade, investment, sustainability standards, and regulatory cooperation. Both sides acknowledge remaining challenges but remain committed to closing gaps ahead of the high-profile summit in New Delhi, signaling a potential game-changing moment in global trade.
