The European Union stands on the brink of securing a landmark free trade agreement with India, according to European Commission President Ursula von der Leyen.

Speaking at the World Economic Forum in Davos on Tuesday, she described the negotiations as nearing a historic conclusion, with only final steps remaining.

Von der Leyen characterised the prospective deal as "the mother of all deals," poised to unite markets encompassing two billion people and representing nearly a quarter of global GDP. This ambitious pact underscores the EU's drive to diversify and expand its trade partnerships amid shifting global dynamics.

She linked the trade momentum to imminent high-level diplomacy, announcing her forthcoming visit to India next weekend following the Davos summit. The trip forms part of intensified efforts to solidify economic ties and propel the agreement forward.

Positioning the India deal within Europe's broader strategy, von der Leyen affirmed the continent's commitment to global engagement. "Europe will always choose the world, and the world is ready to choose Europe," she declared, emphasising openness to international business.

At the core of this approach lies a focus on fostering stable, regulated environments that attract investment, stimulate trade, and promote sustainable growth. The EU views such frameworks as essential for long-term prosperity.

Von der Leyen also spotlighted energy security as a pivotal growth driver, advocating for an "energy union" to deliver affordable, domestically sourced power. She urged an "urgency mindset" to tackle challenges and ensure a resilient future.

Beyond economics, she highlighted Europe's defence advancements, noting unprecedented investments over the past year—surpassing decades of prior efforts. Three European defence tech startups have achieved unicorn status, signalling rising innovation in the sector.

This progress coincides with deepening India-EU ties. European Council President Antonio Luis Santos da Costa and von der Leyen will serve as chief guests at India's 77th Republic Day celebrations on 26 January at Kartavya Path.

Invited by Prime Minister Narendra Modi, the leaders will embark on a three-day state visit from 25 January. Their itinerary includes meetings with President Droupadi Murmu and delegation-level talks with Modi.

The visit will feature the 16th India-EU Summit on 27 January, co-chaired by the EU leaders. An India-EU Business Forum is anticipated on the sidelines, further boosting commercial dialogue.

India and the EU have maintained strategic partnership status since 2004. The 15th India-EU Summit occurred virtually on 15 July 2020, laying groundwork for expanded cooperation.

Bilateral relations have flourished across diverse domains, particularly after the EU College of Commissioners' landmark visit to India in February last year. This momentum has accelerated collaboration in trade, technology, and security.

The Ministry of External Affairs views the EU leaders' Republic Day participation and summit attendance as catalysts for elevating the strategic partnership. Priority areas include trade, defence, energy, and digital innovation.

As negotiations advance, the FTA promises mutual benefits: enhanced market access for EU exporters, bolstered Indian manufacturing, and fortified supply chains resilient to geopolitical risks.

Von der Leyen's Davos remarks reflect optimism tempered by realism—acknowledging remaining hurdles while projecting confidence in delivery. The timing aligns with India's Republic Day, amplifying symbolic and substantive gains.

For India, the deal supports ambitions for economic self-reliance alongside global integration, potentially unlocking billions in trade and investment. Sectors like pharmaceuticals, IT services, and renewables stand to gain prominently.

Europe, meanwhile, seeks to counterbalance dependencies on other markets through diversified alliances. The India pact fits this paradigm, enhancing strategic autonomy in a multipolar world.

Observers anticipate the summit could yield interim commitments or a roadmap to ratification. With von der Leyen's visit imminent, stakeholders watch closely for breakthroughs that could reshape Indo-European commerce.

Based On ANI Report