India, EU close to sealing ‘mother of all trade deals’: Ursula von der Leyen

India-EU FTA talks near completion as Ursula von der Leyen calls the pact the ‘mother of all trade deals’

January 20, 2026

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India and the European Union are on the verge of sealing a “historic trade agreement” that would create a combined market of nearly two billion people and account for almost a quarter of global GDP, European Commission President Ursula von der Leyen said on Tuesday.

Speaking at the World Economic Forum in Davos, days ahead of her visit to New Delhi, von der Leyen said negotiations on the long-awaited India-EU Free Trade Agreement (FTA) are nearing completion.

“I will travel to India. 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,” she said.

Her remarks come amid growing global trade tensions, with US President Donald Trump deploying tariffs against India and several European nations to push them into strategic alignments favoured by Washington.

Von der Leyen said the deal would give Europe a first-mover advantage in one of the world’s fastest-growing regions and underscored the bloc’s push to strengthen economic independence amid ongoing geopolitical shocks.

“It is time to seize this opportunity and build a new independent Europe,” she said, adding that the EU wants to deepen ties with “the growth centres of today and the economic powerhouses of this century.”

European Council President Antonio Costa and von der Leyen will visit India from January 25 to 27 as chief guests for Republic Day celebrations and will hold summit-level talks with Prime Minister Narendra Modi. The two sides are expected to announce the conclusion of FTA negotiations at the India-EU summit on January 27.

The European Union is already India’s largest trading partner, with bilateral trade in goods reaching $135 billion in the 2023–24 financial year. Negotiations for the FTA were first launched in 2007, suspended in 2013 over differences in ambition, and relaunched in June 2022.

Beyond trade, India and the EU are also expected to unveil a defence cooperation framework and a joint comprehensive strategic vision guiding ties from 2026 to 2030. The two have been strategic partners since 2004.

Von der Leyen also addressed broader geopolitical challenges, including tensions involving Greenland, and said the current global churn underscores the need for lasting European strategic autonomy.

Turning to transatlantic relations, she described the United States as both an ally and a friend, while cautioning against actions that could trigger a “dangerous downward spiral”.

On Ukraine, she said Russia has shown no willingness to end its war and stressed that Kyiv must negotiate from a position of strength. Von der Leyen acknowledged President Trump’s role in pushing peace efforts and said the EU would continue working closely with Washington on the issue.

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