‘Mother Of All Deals’: EU Chief On Trade Deal With India Ahead Of India-EU Summit | India News

European Commission President Ursula von der Leyen stated at the World Economic Forum in Davos that the EU is close to finalizing a free trade agreement with India, though final negotiations are ongoing.

“There is still work to do, but we stand on the verge of a historic trade agreement, some call it the mother of all deals,” European Commission President Ursula von der Leyen said at the World Economic Forum in Davos. This pact would unite 2 billion people, representing nearly a quarter of global GDP, as part of EU efforts to diversify trade partnerships.

Her statement comes ahead of the scheduled India-EU summit in New Delhi on 27th January, 2026. The European Union President will also be the Chief guest at the 77th Republic Day celebration on 26th January, 2026.

Leyen’s statement also highlights the efforts to decrease the dependency on the United States of America with the US President’s continuous tariff jabs.
Earlier this month, US President Trump slapped a 10% tariff on selected European countries, including Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the UK, in a push to acquire Greenland.

Also Read: Explained | Can Europe’s Trade ‘Bazooka’ Stop Trump’s Greenland Tariff Threats?

Von der Leyen’s push underscores EU efforts to reduce US reliance amid escalating trade frictions. Earlier this month, President Trump imposed 10% tariffs on goods from Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the UK, starting February 1, 2026, to pressure Greenland acquisition talks, with threats of 25% hikes by June, making the India -EU Free Trade Agreement (FTA) a vital diversification pillar.

The deal could boost trade between giants. The trade deal fits with India’s Act East plan and the EU’s Global Gateway project, strengthening supply chains in chips, renewable energy, and medicines to compete with China.

As Ursula von der Leyen said, it opens ‘huge new chances’ for jobs and new ideas in the European Union’s 27 countries and India’s fast-growing economy.