“Mother of all deals”: EU says historic India trade pact within reach
European Commission President Ursula von der Leyen on Tuesday said the European Union is close to finalising a Free Trade Agreement (FTA) with India, describing it as what some have called the “mother of all deals”.
Addressing the World Economic Forum (WEF) in Davos, von der Leyen underlined Europe’s commitment to expanding global trade and strengthening international cooperation.
Referring to the scale of the proposed agreement, she said there is still work to be done but the negotiations are nearing a decisive stage.
“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. One that would create a market of two billion people, accounting for almost a quarter of global GDP,” von der Leyen said.
The European Commission President said she will travel to India next weekend to take forward work on the proposed trade agreement. She added that the visit will also focus on strengthening economic ties and deepening cooperation between Europe and India.
Placing the India agreement within Europe’s broader trade strategy, von der Leyen said the European Union remains open to partnerships across the world.
“Europe will always choose the world, and the world is ready to choose Europe,” she said.
She added that Europe is focused on creating a stable and well-regulated environment that encourages investment, boosts trade and supports sustainable economic growth.
Along with trade and investment, von der Leyen identified energy as a key pillar of Europe’s growth agenda. She said Europe aims to build an energy union capable of delivering homegrown, reliable and affordable energy to support economic expansion. She stressed the need for an “urgency mindset” to address energy challenges and ensure a sustainable future.
Speaking on defence and security, von der Leyen said Europe has achieved more in defence over the past year than in previous decades, with member states increasing investments to record levels. She also noted that three leading European defence technology startups have reached unicorn status, reflecting growing innovation and strength in the sector.
European Council President Antonio Luís Santos da Costa and European Commission President Ursula von der Leyen will be the Chief Guests at India’s 77th Republic Day celebrations. The two EU leaders will undertake a three-day State Visit to India starting January 25.
During the visit, they will also co-chair the 16th India–EU Summit on January 27. President Costa and President von der Leyen are scheduled to meet President Droupadi Murmu and will hold both restricted and delegation-level talks with Prime Minister Narendra Modi.
An India–EU Business Forum is also expected to be held on the sidelines of the summit.
India and the European Union have been strategic partners since 2004. The 15th India–EU Summit was held virtually on July 15, 2020.
According to the Ministry of External Affairs, India–EU bilateral engagement has expanded and deepened across a wide range of areas, particularly following the historic visit of the EU College of Commissioners to India in February last year.
