At the World Economic Forum (WEF) 2026 in Davos, India and the European Union (EU) have taken decisive steps toward finalising a landmark Free Trade Agreement (FTA), a move expected to significantly strengthen bilateral economic ties. Addressing the global summit in Davos, European Commission President Ursula von der Leyen said the negotiations are in the final stage and described the proposed pact as the “mother of all deals.” She noted that once concluded, the agreement would create one of the world’s largest trade blocs, covering nearly two billion people and accounting for around 25 per cent of global GDP.
Ursula von der Leyen is scheduled to visit India from January 25 to 27 to formally advance the agreement. She will attend India’s 77th Republic Day celebrations as the Chief Guest. According to diplomatic sources, the trade pact could be signed during the 16th India–EU Summit on January 27, which will be held in the presence of Prime Minister Narendra Modi and senior EU leaders.
Who said, Indian economy is dead ??
The European Commission President Ursula von der Leyen has called- the upcoming "India–EU" agreement the “Mother of all Deals” and hails India as the world’s fastest-moving & most dynamic economy.
🇮🇳🤝🇪🇺 pic.twitter.com/j0XcTvy26N— Kiren Rijiju (@KirenRijiju) January 21, 2026
The proposed agreement предусматри major reductions in trade tariffs to boost exports and imports between India and the EU. It is also expected to facilitate a surge in European investments into India, particularly in green energy and technology sectors. Beyond trade, both sides are aiming to deepen cooperation in defence and security. India has also sought easier visa norms and work opportunities for Indian technology professionals in Europe. Observers say the near conclusion of long-running negotiations highlights India’s growing stature in global trade and carries strategic importance amid ongoing trade tensions with other major economies.