NEW DELHI: The long-stalled India–European Union Free Trade Agreement appears closer than ever to becoming reality, with top European leaders openly framing it as a historic geopolitical move rather than a routine trade pact. Speaking at the World Economic Forum in Davos, European Commission President Ursula von der Leyen declared that the India–EU FTA is “on the cusp of history,” calling it the “Mother of All Deals.” WEF President Børge Brende echoed the sentiment, stating that the landmark agreement is “around the corner.”
If concluded, the deal would rank among the world’s largest trade agreements, covering a combined market of nearly two billion people and accounting for almost a quarter of global GDP. At a time of rising protectionism and fractured supply chains, Europe’s outreach to India reflects a strategic push to diversify away from overdependence on the United States and China, while anchoring future growth in a rapidly expanding Asian economy.
Fresh from #WEFDavos:
"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.." President @vonderleyen
President @antoniocostapm & @vonderleyen will visit India Jan 25-27. 🇪🇺🤝🇮🇳#EUIndia pic.twitter.com/JeET60BwwS
— EU in India (@EU_in_India) January 20, 2026
For India, the potential gains are substantial. Deeper access to the EU’s $18-trillion-plus market could turbocharge exports across sectors such as pharmaceuticals, engineering goods, textiles, and IT services. The agreement is also expected to unlock large-scale European investments in clean energy, digital infrastructure, advanced manufacturing, and critical technologies—areas central to India’s long-term development ambitions.
The political momentum behind the deal is unmistakable. Von der Leyen is scheduled to visit India next week as the chief guest at the Republic Day celebrations, followed by a high-level India–EU Summit on January 27, 2026, alongside a major business forum. These engagements underscore the seriousness with which both sides are pursuing the agreement.
