Davos/New Delhi: India and the European Union are edging closer to sealing a long-pending free trade agreement, with Ursula von der Leyen, President of the European Commission, declaring that negotiations have entered a decisive phase and are “on the cusp of a historic trade agreement”.
Speaking at the World Economic Forum in Davos on Tuesday, von der Leyen said the proposed pact could reshape global trade and supply chains, calling it what some have already dubbed the “mother of all deals”.
#BREAKING: EU Commission President Ursula von der Leyen at @wef Davos says India and EU are on the cusp of historic trade agreement which some call mother of all deals. Says, ‘there is still work to do’. pic.twitter.com/XSmiVKQxhm
— Aditya Raj Kaul (@AdityaRajKaul) January 20, 2026
Framing the agreement as part of Europe’s broader economic strategy, she stressed the EU’s push for “fair trade over tariffs, partnership over isolation, and sustainability over exploitation”. India, she said, sits at the heart of Europe’s efforts to de-risk its economy and diversify supply chains by engaging more deeply with global growth centres.
“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.
According to her, the India–EU FTA would create a combined market of nearly two billion people, representing close to a quarter of global GDP, and offer European firms a first-mover advantage in one of the world’s fastest-growing economies.
Her remarks are the strongest public signal yet that both New Delhi and Brussels are keen to conclude negotiations that have stretched over several years but gained renewed momentum amid shifting geopolitical and economic realities. Strategic sectors such as clean technology, digital infrastructure, pharmaceuticals and critical raw materials are central to the talks.
Placing India at the core of Europe’s Indo-Pacific vision, von der Leyen described the region as one of the “economic powerhouses of this century”, adding that Europe is determined to deepen partnerships beyond its traditional markets.
The comments come ahead of a high-profile visit to India later this month. According to the Ministry of External Affairs, von der Leyen and Antonio Costa, President of the European Council, will be on a State Visit to India from January 25 to 27 at the invitation of Narendra Modi.
The two leaders will serve as Chief Guests at India’s 77th Republic Day celebrations and will co-chair the 16th India–EU Summit with Prime Minister Modi on January 27. The visit will also include meetings with India’s President, delegation-level talks, and an India–EU Business Forum on the sidelines.
India and the EU have been strategic partners since 2004, with ties deepening notably after the visit of the EU College of Commissioners to India in February 2025. If finalised, the FTA would rank among the world’s largest and most comprehensive trade agreements, covering goods, services, investment, digital trade, sustainability and regulatory cooperation.
While negotiators acknowledge that complex issues remain, von der Leyen’s Davos remarks point to strong political momentum on both sides. With the New Delhi summit just days away, expectations are mounting that India and the EU could move significantly closer to clinching a deal Brussels has already labelled “historic”.
