European Commission President Ursula von der Leyen said at the World Economic Forum in Davos on Tuesday that talks with India were nearing a breakthrough.
“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, outlining the EU’s push to diversify and deepen its global trade partnerships.
Also Read: A trade deal India pursued for 18 years is now within reach but risks remain
Linking trade momentum with diplomatic engagement, von der Leyen said she would travel to India next weekend after the Davos meeting. The visit, she noted, is aimed at advancing the proposed agreement and strengthening broader economic ties and cooperation between Europe and India.
Situating the India talks within Europe’s wider trade strategy, von der Leyen underlined the bloc’s intent to remain globally engaged. “Europe will always choose the world, and the world is ready to choose Europe,” she said, adding that the EU’s policy focus is on creating a stable and well-regulated environment that encourages investment, boosts trade and supports sustainable growth.
Beyond trade, von der Leyen highlighted energy security as a central pillar of Europe’s growth agenda. She said the EU is working towards building an energy union based on homegrown, reliable and affordable energy, stressing the need for an “urgency mindset” to tackle energy challenges and secure long-term sustainability.She also pointed to significant shifts in Europe’s strategic priorities, particularly in defence. According to von der Leyen, Europe has achieved more in defence preparedness over the past year than in previous decades, with member states raising investments to record levels. She added that three European defence technology startups have recently reached unicorn status, reflecting rising innovation in the sector.
Also Read: India’s billion-dollar trade deal may be the real show this Republic Day
The push towards a comprehensive India-EU trade agreement comes amid intensified political engagement between the two sides. European Council President Antonio Luís Santos da Costa and Commission President von der Leyen will attend India’s 77th Republic Day celebrations at Kartavyapath on January 26 as Chief Guests.
At the invitation of Prime Minister Narendra Modi, the two EU leaders will undertake a three-day State Visit to India beginning January 25. During the visit, they will co-chair the 16th India-EU Summit on January 27, meet President Droupadi Murmu, and hold both restricted and delegation-level talks with Prime Minister Modi. An India-EU Business Forum is also expected to take place alongside the summit.
The Ministry of External Affairs (MEA) noted that India and the European Union have been strategic partners since 2004, with cooperation expanding significantly in recent years. The MEA recalled that the 15th India-EU Summit was held virtually on July 15, 2020, and said bilateral engagement has deepened across sectors, particularly after the visit of the EU College of Commissioners to India in February last year.
According to the MEA, the participation of EU leaders in the Republic Day celebrations and their presence at the 16th India-EU Summit are expected to further strengthen the India-EU Strategic Partnership and advance collaboration in priority areas of mutual interest.