- Free trade agreement announced at World Economic Forum
- Ursula von der Leyen to visit India for formal announcement
Hyderabad: India and the European Union have finalized a landmark free trade agreement at the World Economic Forum 2026 in Davos. The announcement signals a major step in strengthening economic ties between India and the EU. The development came as European Commission President Ursula von der Leyen spoke about the agreement during the global summit in Switzerland.
According to the provided input, Ursula von der Leyen described the agreement as being in its final stages and called it the “mother of all deals.” She underlined its global scale and economic impact. She said, “We are close to a historic business deal. It will create a huge market of about 2 billion people. It represents about 25 percent (a quarter) of the world’s GDP.” Therefore, the India EU trade deal is being viewed as one of the largest trade arrangements in the world once fully implemented.
Free trade agreement to reshape India EU ties
The India EU trade deal was highlighted as a key outcome of discussions at Davos. The agreement aims to deepen cooperation between India and European nations across several sectors. Officials indicated that trade tariffs on exports and imports will be reduced. This move is expected to speed up trade between the two regions. Meanwhile, the deal also opens the door for higher investment flows into India, especially from European countries.
The input also noted that green energy and technology are among the major focus areas for investment. Along with trade, both sides are paying attention to defense and security cooperation. These elements form part of the broader partnership discussed under the India EU trade deal framework.
Republic Day visit and summit discussions
Ursula von der Leyen is scheduled to visit India from January 25 to January 27. During this visit, she will formally announce the agreement. She will also attend India’s 77th Republic Day celebrations as the chief guest. Later, diplomatic sources expect the agreement to be signed during the 16th India EU summit with Prime Minister Narendra Modi on January 27.
India has also placed specific demands during the negotiations. According to the input, India is seeking easier visa and work arrangements for Indian technology professionals in Europe. These discussions have been ongoing for several years. Therefore, their conclusion reflects India’s growing role in global trade talks.
Meanwhile, the timing of the India EU trade deal is seen as important. The input states that amid trade tensions with countries like the US, reaching a deal with Europe holds strategic value for India. As a result, the agreement marks a significant moment in India EU economic relations.
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