'On the cusp of a historic trade agreement' : Ursula von der Leyen gives big update on India-EU FTA at Davos 2026
Along with trade and investment, von der Leyen highlighted energy as an important part of Europe’s growth strategy.
- Jan 20, 2026,
- Updated Jan 20, 2026 5:39 PM IST
European Commission President Ursula von der Leyen said at the World Economic Forum (WEF) in Davos on Tuesday that the European Union is close to finalising a free trade agreement with India, but a few steps are still needed before the deal is completed.
“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 while talking about the EU’s efforts to expand and diversify its trade partnerships.
She linked the progress on the trade deal to upcoming high-level meetings and said she will travel to India next weekend after the World Economic Forum in Davos ends. She said the visit is part of ongoing efforts to move the trade agreement forward and added that important work still needs to be done to strengthen economic ties and deepen cooperation between Europe and India.
Placing the proposed India agreement within Europe’s wider global trade plans, von der Leyen said the continent remains committed to doing business with partners across the world and will continue to engage internationally. “Europe will always choose the world, and the world is ready to choose Europe,” she said, stressing Europe’s intention to expand international trade and cooperation.
Explaining the policy direction behind this approach, she said Europe’s main focus is to create a stable and well-regulated environment that supports investment, increases trade and allows sustainable economic growth.
Along with trade and investment, von der Leyen highlighted energy as an important part of Europe’s growth strategy. She said Europe aims to build an energy union that provides homegrown, reliable and cheaper energy to support economic growth.
She added that the continent needs an “urgency mindset” to deal with energy challenges and ensure a sustainable future.
Talking about broader priorities beyond the economy, von der Leyen said Europe has achieved more in defence in the past year than in the decades before. She said member states have increased defence investments to record levels. She also said that three leading European defence technology startups have reached unicorn status, showing Europe’s growing innovation and strength in the defence sector.
As India–EU ties continue to grow, President of the European Council Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen 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 visit India for three days starting January 25. During their visit, they 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. An India–EU Business Forum is also expected to be held on the sidelines of the India–EU Summit.
The Ministry of External Affairs said that India and the European Union have been strategic partners since 2004 and noted that the 15th India–EU Summit was held virtually on July 15, 2020. The MEA added that bilateral engagement has expanded across many areas, especially after the historic visit of the EU College of Commissioners to India in February last year.
According to the MEA, the participation of EU leaders as Chief Guests at the 77th Republic Day celebrations and their presence at the 16th India–EU Summit will further strengthen the India–EU Strategic Partnership and increase cooperation in key areas of mutual interest.
(With inputs from ANI)
European Commission President Ursula von der Leyen said at the World Economic Forum (WEF) in Davos on Tuesday that the European Union is close to finalising a free trade agreement with India, but a few steps are still needed before the deal is completed.
“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 while talking about the EU’s efforts to expand and diversify its trade partnerships.
She linked the progress on the trade deal to upcoming high-level meetings and said she will travel to India next weekend after the World Economic Forum in Davos ends. She said the visit is part of ongoing efforts to move the trade agreement forward and added that important work still needs to be done to strengthen economic ties and deepen cooperation between Europe and India.
Placing the proposed India agreement within Europe’s wider global trade plans, von der Leyen said the continent remains committed to doing business with partners across the world and will continue to engage internationally. “Europe will always choose the world, and the world is ready to choose Europe,” she said, stressing Europe’s intention to expand international trade and cooperation.
Explaining the policy direction behind this approach, she said Europe’s main focus is to create a stable and well-regulated environment that supports investment, increases trade and allows sustainable economic growth.
Along with trade and investment, von der Leyen highlighted energy as an important part of Europe’s growth strategy. She said Europe aims to build an energy union that provides homegrown, reliable and cheaper energy to support economic growth.
She added that the continent needs an “urgency mindset” to deal with energy challenges and ensure a sustainable future.
Talking about broader priorities beyond the economy, von der Leyen said Europe has achieved more in defence in the past year than in the decades before. She said member states have increased defence investments to record levels. She also said that three leading European defence technology startups have reached unicorn status, showing Europe’s growing innovation and strength in the defence sector.
As India–EU ties continue to grow, President of the European Council Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen 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 visit India for three days starting January 25. During their visit, they 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. An India–EU Business Forum is also expected to be held on the sidelines of the India–EU Summit.
The Ministry of External Affairs said that India and the European Union have been strategic partners since 2004 and noted that the 15th India–EU Summit was held virtually on July 15, 2020. The MEA added that bilateral engagement has expanded across many areas, especially after the historic visit of the EU College of Commissioners to India in February last year.
According to the MEA, the participation of EU leaders as Chief Guests at the 77th Republic Day celebrations and their presence at the 16th India–EU Summit will further strengthen the India–EU Strategic Partnership and increase cooperation in key areas of mutual interest.
(With inputs from ANI)