At a global gathering of political and business leaders, momentum around a long-awaited India–European Union trade agreement appeared to accelerate, with strong signals that negotiations are nearing a decisive stage.
European Commission President Ursula von der Leyen said on Tuesday that talks between India and the EU are moving into a critical phase. Addressing the World Economic Forum in Davos, she told the audience that both sides are “on the cusp of a historic trade agreement” that could reshape global trade and supply chains.
During her speech, von der Leyen positioned the proposed India–EU free trade agreement as central to Europe’s wider economic strategy. She described Europe’s approach as choosing “fair trade over tariffs, partnership over isolation, sustainability over exploitation.” She added that the EU is focused on de-risking its economy and diversifying supply chains by strengthening ties with major growth centres.
“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,” she said, noting that “some call it the mother of all deals.” According to von der Leyen, the pact would create a combined market of around 2 billion people and represent nearly 25% of global GDP. She said this would give European companies a first-mover advantage in one of the world’s fastest-growing regions.
Her remarks mark the clearest public signal so far that both sides want to conclude negotiations that have stretched across several years. Talks have gained fresh urgency amid shifting geopolitical and economic conditions. The EU is seeking to reduce reliance on a narrow group of suppliers and build more resilient supply chains, especially in areas such as clean technologies, digital infrastructure, pharmaceuticals and critical raw materials.
Von der Leyen also highlighted India’s role in the Indo-Pacific, calling it one of the “economic powerhouses of this century.” She said Europe “will always choose the world, and the world is ready to choose Europe.”
The comments come ahead of her visit to New Delhi later this month. According to India’s Ministry of External Affairs, the President of the European Council, Antonio Luis Santos da Costa, and von der Leyen will visit India from January 25 to 27, 2026, at the invitation of Prime Minister Narendra Modi. Both leaders will attend India’s 77th Republic Day celebrations and co-chair the 16th India–EU Summit on January 27. Meetings with India’s President, talks with the Prime Minister, and an India–EU Business Forum are also planned.
India and the EU have been strategic partners since 2004, with ties deepening in recent years. If finalised, the agreement would rank among the world’s largest trade deals, covering trade, services, investment, digital rules and sustainability. While complex issues remain, von der Leyen’s Davos message points to strong political will as expectations rise ahead of the New Delhi summit.
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