EU and India on the verge of ‘historic’ trade deal, von der Leyen says

European Commission President Ursula von der Leyen has said the European Union and India are on the brink of what could become one of the largest trade agreements in history, signalling a major shift in Europe’s global economic strategy.

Speaking after the World Economic Forum in Davos, von der Leyen confirmed she will travel to India next weekend to advance negotiations, describing the talks as entering a decisive phase. “Much work remains to be done, but we are on the verge of a historic trade agreement,” she said.

The proposed deal, which some officials have dubbed the “mother of all trade agreements,” would create a combined market of nearly two billion people and represent close to a quarter of global GDP. According to von der Leyen, the agreement would give Europe a first-mover advantage in India, one of the world’s fastest-growing major economies.

She framed the negotiations as part of a broader effort by the EU to deepen economic ties with emerging growth centres, particularly in the Indo-Pacific. “Europe wants to do business with today’s growth centres and this century’s economic powerhouses—from Latin America to the Indo-Pacific and beyond,” she said.

Von der Leyen also linked trade to geopolitical stability, arguing that economic engagement is central to Europe’s approach to global security. “Europe will always choose peace, and the world is ready to choose Europe,” she added.

Her remarks come as the EU seeks to diversify supply chains, reduce strategic dependencies, and expand its economic footprint beyond traditional partners, amid heightened global competition and geopolitical tensions.