European Commission President Ursula von der Leyen has indicated that the European Union and India are on the threshold of sealing a long-awaited free trade agreement, raising expectations that one of the world’s most ambitious trade pacts could soon become a reality.
Addressing the World Economic Forum in Davos on Tuesday, January 20, von der Leyen said negotiations had reached a decisive stage. “There is still work to do. But we are on the cusp of a historic trade agreement,” she noted, describing the proposed pact as what many have dubbed “the mother of all deals”.
MODI MASTER STROKE. MASSIVE VINDICATION FOR INDIA'S GROWTH STORY.
— Rahul Shivshankar (@RShivshankar) January 20, 2026
"DEAD ECONOMY" JIBE HURLER TRUMP WILL NOT LIKE THIS.
EU Commission President Ursula von der Leyen says the EU will strike “the mother of all deals” with India next week…"
Says India is "fastest growing" "most… pic.twitter.com/xNoruMtD5k
If concluded, the agreement would bring together a combined market of nearly two billion people, representing close to a quarter of global GDP. According to von der Leyen, the FTA would help the EU diversify its trade partnerships while deepening economic engagement with one of the world’s fastest-growing major economies.
Her remarks come ahead of a high-profile visit to India next week, during which she is expected to be the chief guest at the Republic Day celebrations on January 26, alongside other European leaders, a symbolic gesture underscoring the strategic importance Brussels attaches to ties with New Delhi.
Echoing this optimism, Commerce and Industry Minister Piyush Goyal also characterised the proposed EU-India trade pact as transformative. “We have done FTA deals with seven developed countries so far. This one will be the mother of all,” Goyal said in New Delhi. “It will bring together two of the world’s most powerful economies and offer enormous growth potential for both sides.”
