European Commission President Ursula von der Leyen announced that a free trade agreement between the EU and India is close, calling it "the mother of all deals." The pact would create a single market for two billion people with combined GDP equal to a quarter of the world’s output. In an effort to speed up the conclusion of talks, Von der Leyen is set to head to New Delhi immediately after the World Economic Forum in Davos.

The commission chief stressed that substantial work remains but added that the outcome would give Brussels a "first‑mover advantage" in the Indian market. "Europe wants to do business with the growth centres of today and the economic powerhouses of this century," von der Leyen said, contrasting the EU’s approach with the isolationist tariffs pursued by other countries.

Negotiations on the trade deal began in 2007 and were paused for eight years due to disagreements over intellectual property, car tariffs, and other key issues. Talks resumed in 2021. In February 2025, von der Leyen and Indian Prime Minister Narendra Modi backed an ambitious target to clinch the deal by the end of 2025, but the timetable slipped. The agreement would allow European firms to deepen access to India’s fast‑growing market and bolster the EU’s position in the Indo-Pacific region.