Davos: European Commission President Ursula von der Leyen on Tuesday indicated that long-running trade negotiations between India and the European Union are nearing a decisive phase, telling global leaders at the World Economic Forum (WEF) in Davos that both sides are close to a landmark agreement that could significantly influence global trade and supply chains.
Addressing the gathering, von der Leyen positioned the proposed India-EU free trade agreement as a core pillar of Europe’s broader economic strategy. She emphasised Europe’s preference for cooperation-driven commerce, stating that the bloc aims to promote “fair trade over tariffs, partnership over isolation, sustainability over exploitation.” According to her, strengthening ties with fast-growing economies is central to the EU’s efforts to diversify supply chains and reduce economic risk.
“And right after Davos, the next weekend, I will travel to India. There is still work to do, but we are on the cusp of a historic trade agreement,” von der Leyen said, adding that “some call it the mother of all deals.”
She noted that the proposed pact could unite a market of nearly two billion people, representing around one-quarter of global GDP, potentially giving European companies an early advantage in one of the world’s fastest-expanding economies.
Momentum Builds After Years of Negotiations
Von der Leyen’s remarks are being viewed as the strongest public signal yet that both sides are pushing to conclude negotiations that have stretched over several years. While talks have gone through multiple rounds in the past, momentum has accelerated amid shifting geopolitical realities and growing concerns over supply chain concentration.
Like other major economies, the European Union has been working to reduce over-dependence on limited suppliers while strengthening resilience in strategic areas such as clean energy, digital infrastructure, pharmaceuticals, and critical raw materials.
Placing India at the centre of this vision, von der Leyen described the Indo-Pacific region as one of the defining economic engines of the century.
“Europe wants to do business with the growth centres of today and the economic powerhouses of this century, from Latin America to the Indo-Pacific and far beyond,” she said, adding that Europe “will always choose the world, and the world is ready to choose Europe.”
High-Level India Visit Expected to Push Talks Forward
Her comments come ahead of her scheduled visit to New Delhi later this month, which is expected to give renewed political momentum to the negotiations. The visit coincides with an important diplomatic milestone in India-EU relations.
According to a statement from India’s Ministry of External Affairs (MEA), European Council President Antonio Luís Santos da Costa and Ursula von der Leyen will undertake a State Visit to India from January 25 to 27, 2026, at the invitation of Prime Minister Narendra Modi. Both leaders will serve as Chief Guests at India’s 77th Republic Day celebrations, highlighting the growing strategic importance of the partnership.
During their visit, the European leaders will also co-chair the 16th India-EU Summit with Prime Minister Modi on January 27. The agenda includes meetings with the President of India, restricted and delegation-level discussions, and an India-EU Business Forum aimed at deepening commercial and investment ties.
A Potentially Transformational Agreement
India and the European Union have been strategic partners since 2004, but relations have gained fresh urgency in recent years. The MEA has noted that cooperation now spans a wide range of sectors, including trade, technology, climate action, connectivity, and people-to-people exchanges. The visit of the EU College of Commissioners to India in February 2025 was described by both sides as a turning point.
If finalised, the India-EU trade agreement would rank among the largest and most comprehensive trade deals globally, extending beyond tariffs to cover services, investment, digital trade, sustainability norms, and regulatory cooperation. For India, it would deepen access to one of its largest trading partners, while for Europe, it would secure a stronger presence in a rapidly growing market at a time of global economic fragmentation.
Although negotiators acknowledge that sensitive issues remain unresolved, von der Leyen’s comments at Davos point to strong political intent on both sides. With a high-profile summit in New Delhi just days away, expectations are mounting that India and the EU may finally move closer to sealing what Brussels has already termed a “historic” deal.
Disclaimer
This article has been published by Storify News as an original rewrite based on publicly available information and official statements. Storify News is a digital news aggregation platform and does not conduct original field reporting. The content is intended solely for informational purposes.
