Davos. European Union (EU) chief Ursula von der Leyen has said that the Free Trade Agreement (FTA) between India and the European Union has now reached its decisive stage. He told the World Economic Forum (WEF) in Davos that the two sides are “very close to a historic trade deal”, which some are calling the “Mother of All Deals”. In her address, von der Leyen said Europe wants to promote fair trade instead of tariffs, partnership instead of isolation, and sustainable development instead of exploitation. She told that she will visit India immediately after Davos, although some issues are still pending.
Why is this agreement special?
“We stand on the cusp of a historic trade agreement. Some people call it the ‘Mother of All Deals,'” he said. According to the EU chief, the agreement will create a common market of nearly two billion people and cover about 25% of the world’s GDP. This will give European companies a huge advantage as they move into a rapidly growing market like India.
India is the center of EU strategy
Von der Leyen described India as an important part of Europe’s new economic strategy. He said that the Indo-Pacific region is the economic center of this century and Europe wants to further strengthen its relations with countries like India. He said that the EU wants to strengthen the supply chain with India especially in areas like clean technology, digital infrastructure, medicines and critical minerals.
visit India soon
This statement of the EU Chief has come at a time when she is going to visit India between 25 to 27 January 2026. According to India’s Ministry of External Affairs, European Council President Antonio Costa and EU chief Ursula von der Leyen will visit India at the invitation of Prime Minister Narendra Modi. Both the leaders will be the chief guests at India’s 77th Republic Day celebrations, reflecting the growing importance of India-EU relations.
Summit and Business Forum
The 16th India-EU summit will be held in New Delhi on January 27, which will be co-chaired by Prime Minister Modi. During this period, there will be high-level meetings between the two sides and an India-EU Business Forum will also be organised. If this trade agreement is completed, it will be one of the largest and most ambitious agreements in the world. This will include not only tax, but also issues like services, investment, digital trade, environmental standards, cooperation in rules. This will give India better access to a big market like Europe, while Europe will get a stronger hold in a rapidly growing country like India. Although some complex issues remain, signals from Davos show that India and the EU are very close to completing this historic agreement. The meetings to be held in New Delhi in the coming days can prove to be a big step in this direction.
