EU chief says India trade deal within reach
Ursula von der Leyen said the India-EU trade pact reflects Europe’s push for fair trade, strong partnerships, and sustainable growth.
European Commission President Ursula von der Leyen has sent one of the strongest signals yet that India and the European Union may finally be nearing the finish line on a long-awaited free trade agreement, describing the negotiations as being “on the cusp of a historic deal.” Speaking before an audience of global political and business leaders at the World Economic Forum in Davos, von der Leyen suggested that the proposed pact could reshape global trade flows and supply chains at a time of growing geopolitical uncertainty.
Addressing the gathering, she framed the India-EU agreement not as an isolated commercial exercise, but as a central pillar of Europe’s broader economic and strategic vision. In her words, the deal reflects Europe’s commitment to “fair trade over tariffs, partnership over isolation, sustainability over exploitation.” The message was clear: as the global economy becomes more fragmented, the European Union wants to anchor itself firmly to trusted partners and fast-growing markets.
Von der Leyen revealed that she will travel to India immediately after Davos, underlining the urgency and political weight now attached to the negotiations. “There is still work to do, but we are on the cusp of a historic trade agreement,” she said, noting that some in Brussels have already dubbed.
The remarks mark the clearest public indication so far that both sides are pushing hard to conclude talks that have stretched on for years. Negotiations between India and the EU have gone through multiple rounds and pauses, often stumbling over sensitive issues such as tariffs, market access, regulatory standards and intellectual property. However, shifting global realities — from supply chain disruptions to heightened geopolitical tensions — have injected fresh momentum into the process.
For the EU, reducing over-dependence on a narrow group of suppliers has become a strategic priority. Like several major economies, Europe is seeking to “de-risk” rather than decouple, building more resilient and diversified supply chains. Von der Leyen highlighted sectors such as clean technologies, digital infrastructure, pharmaceuticals and critical raw materials as areas where closer cooperation with India could be mutually beneficial.
India, meanwhile, fits squarely into Europe’s long-term view of where global growth will come from. Von der Leyen described the Indo-Pacific as one of the “economic powerhouses of this century,” placing India at the heart of that transformation.
Her Davos comments come just days ahead of a high-profile visit to New Delhi that is expected to give the trade talks a significant political push. According to India’s Ministry of External Affairs, von der Leyen and European Council President Antonio Luís Santos da Costa will be on a State Visit to India from January Both leaders will serve as Chief Guests at India’s 77th Republic Day celebrations, a symbolic gesture underscoring the growing strategic importance of the partnership.
The visit will also coincide with the 16th India-EU Summit, which von der Leyen and da Costa will co-chair alongside Prime Minister Modi on January 27. The leaders are scheduled to meet the President of India and hold both restricted and delegation-level talks with the Prime Minister. An India-EU Business Forum is also expected to take place on the sidelines, bringing together industry leaders eager to explore new trade and investment opportunities.
India and the European Union have been strategic partners since 2004, but relations have taken on new urgency and depth in recent years. A major turning point came with the visit of the EU College of Commissioners to India in February 2025, a trip described by both sides as historic. Since then, cooperation has expanded across a wide range of areas, including trade, technology, climate action, connectivity and people-to-people exchanges.
Despite the optimism, negotiators privately acknowledge that difficult issues remain unresolved. Balancing market access with domestic sensitivities, aligning regulatory frameworks, and addressing concerns around sustainability and labour standards will require compromise on both sides. Still, von der Leyen’s remarks suggest a strong political will in Brussels to bridge the remaining gaps.
With a major summit in New Delhi just days away and top leaders personally invested in the outcome, expectations are now rising that India and the EU could finally move closer to sealing what many in Europe are already calling a game-changing agreement. If successful, the deal would not only deepen economic ties between two major partners but also send a powerful signal about the future shape of global trade in an increasingly uncertain world.