Updated 20 January 2026 at 18:12 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.
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.
The remarks come amid intensified engagement between Indian and European negotiators ahead of a scheduled India–EU summit on the 27th of this month. von der Leyen, alongside European Council President Antonio Costa, will also be the chief guests for the 77th Republic Day parade.
Earlier on Friday, Commerce and Industry Minister Piyush Goyal had also dubbed the deal as “the mother of all deals.”
Long-running Negotiations in Final Stage
India and the European Union resumed FTA negotiations in 2022 after a prolonged pause, with both sides seeking to conclude a comprehensive agreement covering goods, services, investment, and regulatory cooperation.
The proposed agreement would involve India and the EU’s 27 member states, creating one of the largest bilateral trade frameworks globally in terms of economic scale and market size.
India-EU Trade Relationship
The European Union is among India’s largest trading partners. Bilateral trade in goods between India and the EU stood at around USD 90 billion in 2024-25, with India exporting pharmaceuticals, engineering goods, textiles, and chemicals, while importing machinery, transport equipment, and high-value manufactured products.
The FTA discussions aim to reduce or eliminate tariffs across a wide range of products, improve market access for services, and create a predictable framework for investment flows.
While negotiations have progressed across multiple chapters, certain areas remain under discussion, including tariff schedules, services market access, sustainability provisions, and regulatory alignment.
Published By : Shourya Jha
Published On: 20 January 2026 at 17:16 IST