European Commission President Ursula von der Leyen, speaking at the World Economic Forum said that EU and India are very close to finalising a free trade agreement. While some work still remains, she said the deal is almost ready and described it as “the mother of all trade deals” because of its huge size and impact. A possible trade agreement between India and the European Union could turn into one of the biggest economic deals in the world, she said.
“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,” von der Leyen said.
Talks on the India-EU trade deal first began in 2007 but were stalled for nearly ten years. Negotiations restarted in 2022 with fresh political support from both sides. Since then, progress has picked up speed, helped by regular talks under the India-EU Trade and Technology Council.
Why this deal matters?
The agreement would link one of the world’s fastest-growing economies, India, with the European Union, one of the world’s biggest trading blocs. At a time when countries are trying to reduce risks and avoid depending on just one partner, this deal could reshape global supply chains and trade routes.
For the European Union, India is becoming a key partner as it looks to reduce its dependence on China and work more closely with trusted economies. For India, better access to the 27 EU countries already its second-largest trading partner, would help boost exports, create jobs, and strengthen its manufacturing sector.
As per reports, Ursula von der Leyen is expected to visit India early next week. Diplomats say this visit could be crucial in resolving the toughest issues at the political level. The timing is important, as an India-EU leaders’ meeting is also planned later this month.
