EU Close To ‘Mother Of All Deals’ With India, Says Ursula Von Der Leyen

Last Updated:January 20, 2026, 16:59 IST

Addressing the World Economic Forum in Davos, Ursula von der Leyen said that while some steps remain, negotiations are nearing their conclusion.

EU Chief Ursula von der Leyen and Prime Minister Narendra Modi. (Reuters/File)

The European Union is close to finalising a free trade agreement with India that could create a market of nearly two billion people and account for almost a quarter of global GDP, European Commission President Ursula von der Leyen said, signalling what she described as a potentially historic moment in EU–India economic ties.

Addressing the World Economic Forum in Davos, Ursula von der Leyen said that while some steps remain, negotiations are nearing their conclusion.

“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, during a section of her speech focused on expanding and diversifying Europe’s trade partnerships.

Linking the trade push to upcoming diplomatic engagement, Ursula von der Leyen said she will travel to India next weekend after the Davos meeting concludes, as part of efforts to advance the agreement and deepen economic cooperation between Europe and India.

Placing the proposed pact within the EU’s broader global strategy, she said Europe remains committed to working with partners worldwide.

“Europe will always choose the world, and the world is ready to choose Europe," she said, adding that the EU’s policy focus is on building a stable and well-regulated environment that supports investment, boosts trade and enables sustainable growth.

Ursula Von der Leyen also highlighted energy as a central pillar of Europe’s growth agenda, saying the bloc aims to build an energy union that delivers reliable, homegrown and cheaper energy. She stressed the need for what she called an “urgency mindset" to address energy challenges and secure long-term economic stability.

Beyond trade and energy, she pointed to a sharp increase in defence investment, saying Europe has done more in the past year than in previous decades. Member states, she said, have raised defence spending to record levels, and three European defence technology startups have now reached unicorn status, underlining growing innovation in the sector.

Against the backdrop of expanding India-EU engagement, Antonio Luis Santos da Costa, President of the European Council and Ursula von der Leyen will attend India’s 77th Republic Day celebrations at Kartavya Path on January 26 as chief guests. At the invitation of Narendra Modi, the two leaders will undertake a three-day state visit to India starting January 25.

During the visit, they will co-chair the 16th India-EU Summit on January 27 and are scheduled to meet Droupadi Murmu, alongside holding restricted and delegation-level talks with Prime Minister Modi. An India-EU Business Forum is also expected on the sidelines of the summit.

India’s Ministry of External Affairs said India and the European Union have been strategic partners since 2004, noting that bilateral engagement has expanded significantly, particularly following the visit of the EU College of Commissioners to India in February last year. The ministry added that the participation of EU leaders in the Republic Day celebrations and the summit is expected to further deepen the India-EU Strategic Partnership and advance cooperation in priority areas of mutual interest.

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