January 21, 2026
NEW DELHI – European Commission President Ursula von der Leyen on Tuesday said that the European Union is close fo finalising a historic free trade agreement with India, describing it as the “mother of all deals”.
Addressing the World Economic Forum 2026 in Davos, Switzerland, von der Leyen said while there is still some work to do, the deal would create a market of 2 billion people. “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 2 billion people, accounting for almost a quarter of global GDP,” she said, highlighting the EU’s efforts to broaden and diversify its trade partnerships.
She added that her upcoming visit to India next weekend, after the conclusion of the World Economic Forum Annual Meeting 2026, is part of the ongoing efforts to finalise the major trade agreement.
The EU Commission president said the deal, when finalised, will further strengthen economic ties and deepen cooperation between Europe and India.
“Europe will always choose the world, and the world is ready to choose Europe,” she said.
She further stressed Europe’s commitment to create a stable and well-regulated environment that supports investment, boosts trade and enables sustainable economic growth.
Her remarks came in the backdrop of President of the European Council Antonio Luis Santos da Costa and President of the European Commission Ursula von der Leyen’s upcoming India visit. Both the EU leaders will attend the 77th Republic Day celebrations at Kartavyapath on January 26 as Chief Guests.
At the invitation of Prime Minister Narendra Modi, the two European Union leaders will undertake a three-day State Visit to India from January 25. During their visit, the leaders 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 restricted as well as delegation-level talks with Prime Minister Modi.