India and EU on the Verge of “Historic” Trade Deal, Says von der Leyen

India and the European Union are on the verge of finalising what European Commission President Ursula von der Leyen called a “historic trade agreement,” which could create a market of 2 billion people, accounting for nearly a quarter of global GDP. She made the remarks on Tuesday during an address at the World Economic Forum in Davos, underlining the scale and potential impact of the deal.

Von der Leyen said her visit to India, scheduled for later this week, will help advance the talks. “I will travel to India. 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,” she said, stressing the significance of deepening economic ties between the EU and India.

Her comments come amid heightened global trade tensions, with US President Donald Trump having imposed tariffs on India and European nations to push them toward positions favorable to the United States. Against this backdrop, von der Leyen emphasised the EU’s desire to assert its own economic and geopolitical independence. “It is time to seize this opportunity and build a new independent Europe,” she said, referring to current “geopolitical shocks” and the bloc’s efforts to respond collectively as a 27-nation entity.

The potential India-EU deal, if finalised, is expected to cover a wide range of sectors, including goods, services, investment, and regulatory cooperation, significantly boosting trade and investment flows. Officials from both sides have described the pact as transformative, not only for economic growth but also for strengthening strategic ties between India and the European Union. The agreement could mark one of the largest trade initiatives of the decade, benefiting businesses and consumers across both regions.