President of the European Fee Ursula von der Leyen talks through the Annual Assembly of the World Financial Discussion board in Davos, Switzerland on Tuesday.
| Picture Credit score: AP
The European Union is on the cusp of signing a historic commerce settlement with India that’s being referred to as ‘the mom of all offers’, European Fee President Ursula von der Leyen introduced on Tuesday (January 20, 2026), asserting it would create a marketplace for 2 billion folks or about one-fourth of the worldwide GDP.
In a particular handle in Davos on the World Financial Discussion board Annual Assembly, she stated the true would crucially present a first-mover benefit for Europe with one of many world’s fastest-growing and most dynamic continents.
Comply with World Financial Discussion board 2026 highlights
“Proper after Davos, I’ll journey to India. There’s nonetheless work to do. However we’re on the cusp of a historic commerce settlement. Some name it the mom of all offers,” she stated.
“Europe needs to do enterprise with the expansion centres of at present and the financial powerhouses of this century.”
“From Latin America to the Indo-Pacific and much past, Europe will all the time select the world. And the world is prepared to decide on Europe,” she stated.
President of the European Council, Antonio Costa and Ms. von der Leyen will likely be in India from January 25 to 27 to grace the Republic Day celebrations as chief friends and maintain summit talks with Prime Minister Narendra Modi.
The 2 sides are set to announce the conclusion of negotiations on the much-awaited Free Commerce Settlement on the India-EU summit on January 27.
European Fee President stated the EU can be engaged on a brand new free commerce settlement with Australia.
“We’re additionally advancing with the Philippines, Thailand, Malaysia, the UAE — and extra,” she added.
She additionally stated Europe will all the time stand with Ukraine till there’s a simply and lasting peace.
The European Union is India’s largest commerce companion, with bilateral commerce in items recording $135 billion within the monetary yr 2023-24. The free commerce settlement is predicted to considerably improve commerce ties.
The proposed settlement is predicted to convey a qualitative change in deepening the general bilateral ties in a spread of sectors, in addition to at a time when the world is witnessing commerce disruptions in view of Washington’s tariff coverage.
In addition to firming up the free commerce settlement, the 2 sides are prone to unveil a defence framework pact and a strategic agenda on the summit.
India and the European Union have been strategic companions since 2004.
The bold FTA is being firmed up at a time amid growing considerations over Washington’s commerce and tariff insurance policies, which have impacted each India and the 27-nation EU.
India and the EU are additionally anticipated to unveil a joint complete strategic imaginative and prescient that can govern their relationship for the interval 2026-2030.
The EU and India had first launched negotiations for the free commerce settlement in 2007, earlier than the talks have been suspended in 2013 resulting from a spot in ambition. The negotiations. The negotiations have been relaunched in June 2022.
The proposed Safety and Defence Partnership (SDP) will facilitate deeper defence and safety cooperation between the 2 sides.
The SDP will convey interoperability within the defence area, and it’ll open up avenues for Indian corporations to take part within the EU’s SAFE (Safety Motion for Europe) programme. The SAFE is the EU’s Euro 150 billion monetary instrument designed to supply monetary help to member states to hurry up defence readiness.
On the summit, India and the EU are additionally set to launch the negotiations for a Safety of Data Settlement (SOIA). The SOIA is predicted to spice up industrial defence cooperation between the 2 sides.
Revealed – January 20, 2026 11:55 pm IST
