EU–India Trade Pact Reaches Crucial Stage
European Commission President Ursula von der Leyen on Tuesday said India and the European Union are nearing a historic trade agreement. Speaking at the World Economic Forum in Davos, she stressed the scale of the proposed pact. According to her, the combined India–EU market would include nearly 2 billion people. As a result, it could account for almost one-quarter of global GDP. Importantly, her remarks came just days before her scheduled visit to India.
‘Mother of All Deals’ Gains Momentum
Moreover, von der Leyen said negotiations have entered their final phase. Although some work remains, she sounded confident about the outcome. “We are on the cusp of a historic trade agreement. Some call it the mother of all deals,” she said. Meanwhile, the push for the pact comes amid growing global trade tensions. Notably, former US President Donald Trump has used tariffs against India and European nations to influence geopolitical positions. Therefore, both sides now see strategic urgency in sealing the deal.
Republic Day Summit Likely to Seal FTA
Meanwhile, von der Leyen and European Council President Antonio Costa will travel to India from January 25 to 27 as Republic Day chief guests. During the visit, they will hold summit-level talks with Prime Minister Narendra Modi. Significantly, both sides are expected to announce the conclusion of negotiations on the long-awaited India–EU Free Trade Agreement on January 27. Additionally, the EU remains India’s largest trading partner, with bilateral trade reaching $135 billion in FY 2023–24.
Why the Deal Matters for India and Europe
Furthermore, the FTA is expected to deepen economic cooperation and boost market access on both sides. As a result, Europe could gain a first-mover advantage in one of the world’s fastest-growing regions. Historically, negotiations began in 2007 but stalled in 2013. However, talks resumed in 2022 amid shifting global trade patterns. Additionally, leaders may unveil a defence cooperation framework and a strategic roadmap for 2026–2030. Therefore, the upcoming summit could significantly elevate the India–EU strategic partnership, which has existed since 2004.
