Updated 21 January 2026 at 00:43 IST
‘Mother of All Deals’: EU Chief Ursula von der Leyen Hints At Historic India–EU Trade Agreement 'Next Week' | WEF Davos 2026
India and the European Union are close to concluding a long-pending Free Trade Agreement, with European Commission President Ursula von der Leyen stating that negotiations are on the cusp of what has been described as the “mother of all deals”. The agreement, under discussion for years, would cover trade in goods, services, and investment between India and the 27-nation bloc.
New Delhi: India and the European Union are approaching the final stages of negotiations on a Free Trade Agreement, European Commission President Ursula von der Leyen said, indicating that talks are nearing a decisive point.
Speaking during the World Economic Forum in Davos, von der Leyen said, “There is still work to do. But 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, accounting for almost a quarter of global GDP.”
Von der Leyen, alongside European Council President António Costa, will be the chief guests at India’s 77th Republic Day parade on January 26 and will co-chair the India-EU Summit on January 27. Commerce and Industry Minister Piyush Goyal also recently referred to the pact as “the mother of all deals.”
How the India-EU Trade Agreement Works
The agreement, which has been in negotiation since 2007 and resumed in July 2022, aims to create a combined market of around two billion people. It is expected to enhance India’s access for exports such as textiles, footwear, and gems, while allowing the EU to secure lower tariffs on automobiles, wines, and spirits. Von der Leyen confirmed her upcoming visit to India to co-chair the summit with European Council President Costa.
Long-running Negotiations in Final Stage
India and the EU resumed FTA negotiations in 2022 after a prolonged pause, with both sides seeking a comprehensive agreement covering goods, services, investment, and regulatory cooperation. While most chapters of the agreement have progressed, certain areas remain under discussion, including tariff schedules, services market access, sustainability provisions, and regulatory alignment.
India-EU Trade Relationship
The European Union is among India’s largest trading partners. Bilateral trade in goods stood at around USD 90 billion in 2024-25, with India exporting pharmaceuticals, engineering goods, textiles, and chemicals, and importing machinery, transport equipment, and high-value manufactured products. The FTA aims to reduce or eliminate tariffs, improve market access for services, and create a predictable framework for investment flows.
Published By : Shourya Jha
Published On: 20 January 2026 at 17:16 IST