European Commission President Ursula von der Leyen on Tuesday said that the European Union was “on the cusp” of the long-awaited free trade agreement with India. The statement comes ahead of her visit to New Delhi for a summit that is expected to lead to the conclusion of talks on the agreement.
“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.
“Right after Davos, I will travel to India. There is still work to do, but we are on the cusp of a historic trade agreement,” she added.
European Council President Antonio Costa and Ursula von der Leyen will be in India from 25 to 27 January. They will be the chief guests at the 77th Republic Day celebrations and will also attend a summit with Prime Minister Narendra Modi.
Why This Deal Matters?
The EU is India’s largest trade partner, with trade in goods worth $135 billion in 2023–24. The free trade agreement (FTA), which is expected to be signed later in the year, is set to significantly boost trade between India and EU member states.
For the EU, India is a key pillar in its strategy to cut reliance on China and deepen engagement with trusted partners. For India, greater access to the 27-nation bloc, its second-largest trading partner, would enhance export competitiveness and bolster its ambition to move up the manufacturing value chain.
