As India gears up for Republic Day celebrations, high-level EU dignitaries are set to grace the occasion, fueling optimism for a breakthrough in trade talks. European Commission President Ursula von der Leyen and European Council President Antonio Costa arrive in New Delhi on January 25 for a four-day visit.
Von der Leyen’s excitement over the impending India-EU Free Trade Agreement (FTA) was palpable at Davos. Citing US tariff chaos and global economic flux, she highlighted Europe’s pivot towards diversified markets. ‘Post-Davos, India is next. We’re close to sealing a historic trade pact—the mother of all deals—for 2 billion consumers and a quarter of world GDP,’ she stated.
The agreement positions Europe as a pioneer in engaging Asia’s growth engine. ‘We want to do business with today’s growth centers and this century’s economic powerhouses,’ she noted.
Insider reports suggest the January 27 India-EU Summit will wrap up FTA negotiations with a formal declaration. A joint document will mark the end of talks, followed by legal approvals in Europe.
Additional pacts on defense-security collaboration and mobility for Indian workers are also expected. Spanning goods and services with 27 EU nations—India’s top trading partner—the deal could transform bilateral commerce, which reached $135 billion last fiscal year.
Commerce Minister Piyush Goyal, who labeled it the ‘mother of all deals,’ anticipates enhanced access and economic synergies. India seeks duty-free entry for textiles, leather goods, apparel, gems, jewelry, and handicrafts.
Challenges persist, including the EU’s CBAM, but Goyal affirmed last week that discussions are in the endgame. This FTA promises to fortify supply chains, boost exports, and cement strategic partnerships in an era of trade realignments.