A long-stalled India–European Union free trade agreement is entering a decisive phase, with European Commission President Ursula von der Leyen announcing at the World Economic Forum in Davos that she will travel to India right after Davos to help seal what could become one of the world’s most consequential trade pacts
“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, underscoring the scale and strategic importance of the proposed partnership.
Negotiations on the India–EU free trade agreement began in 2007 but remained stalled for nearly a decade before being revived in 2022. Since then, talks have gathered momentum alongside the India–EU Trade and Technology Council, which has helped narrow differences on regulation, technology cooperation and supply-chain resilience.
For Brussels, India is central to its effort to diversify trade and reduce dependence on China. For New Delhi, deeper access to the 27-nation bloc—its second-largest trading partner—would bolster exports and support ambitions to move up the manufacturing value chain. Bilateral trade has already surged, with goods trade touching €124 billion in 2023 and services trade nearing €60 billion.
Despite optimism, hurdles remain, including EU demands for tariff cuts on automobiles and alcohol, and India’s push for easier mobility of skilled professionals. Sustainability standards and public procurement access also remain sensitive issues.
Von der Leyen’s upcoming visit is seen as a critical political push to resolve these sticking points ahead of a planned India–EU leaders’ meeting later this month. A successful agreement would not only reshape trade flows but also signal a major strategic alignment at a time when global supply chains are being reconfigured.
