India and the European Union are very close to finalising a very important Free Trade Agreement (FTA), which the European Commission President, Ursula von der Leyen, has described as the “Mother of All Deals”. She spoke about it at the World Economic Forum in Davos, which means this is a very big and important agreement. The President of the European Commission also noted that this agreement could create a market of almost 2 billion people. Ursula made these remarks right before her visit to India from 25 to 27 January 2026, to witness the Republic Day celebrations alongside European Council President Antonio Costa, and to meet Prime Minister Narendra Modi for important talks.
India–EU free trade talks began in 2007 but ended in 2013 because the 2 sides couldn’t reach an agreement. Talks started again in June 2022. The European Union is already India’s largest trading partner, with trade worth about $135 billion in 2023–24, and this agreement is expected to increase trade, investment, and jobs.
Implementation of this deal is very important because global trade tensions are rising, and the United States, under President Donald Trump, has warned many countries that it will impose tariffs on them. Europe doesn’t want to rely on any one country and is building stronger economic ties with faster-growing countries like India.
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Along with the trade deal, the India–EU summit may also announce that they’ll work more closely together in the future on defence and a new long-term plan for 2026 to 2030. Ursula von der Leyen said that Europe wants to build strong relations with other countries while becoming self-independent. She also spoke about the Russia-Ukraine war, stressing the need for peace and continued cooperation with the United States.
