India and the European Union are on the verge of finalising a major free trade agreement that could transform commerce between the two regions. European Commission President Ursula von der Leyen called it “the mother of all deals” at the World Economic Forum in Davos, highlighting its potential to benefit both economies and millions of businesses.
The deal, if signed, would link markets of nearly 2 billion people and account for around a quarter of global GDP. Von der Leyen said the agreement could open new opportunities in clean energy, digital trade, healthcare, and pharmaceuticals. It is expected to boost exports from India while giving European companies easier access to one of Asia’s fastest-growing markets.
Von der Leyen is scheduled to visit India immediately after Davos to accelerate the final stages of negotiation ahead of the high-level India-EU summit in New Delhi later this month. She, along with other EU leaders, will attend India’s Republic Day celebrations and meet Prime Minister Narendra Modi to discuss trade and investment cooperation.
The India-EU FTA negotiations were first launched in 2007 and relaunched in 2022 after nearly a decade-long pause. The talks aim to remove trade barriers, harmonise regulations, and expand collaboration in goods, services, and investment. While some challenges remain, such as market access for sensitive sectors and regulatory alignment, both sides are committed to concluding the deal quickly.
If completed, this trade pact would be one of India’s most significant international agreements, offering expanded market access for Indian businesses and a strategic foothold in Asia for European firms.
