European Commission President Ursula von der Leyen announced at the World Economic Forum in Davos that the European Union is close to sealing a significant free trade agreement with India. Describing it as a historic pact, she highlighted the potential to create a market of nearly two billion people. Von der Leyen is scheduled to visit India next week and will be the chief guest at the Republic Day Parade on January 26.
The EU has been proactive in addressing energy security and raw material access in recent years, but von der Leyen emphasized the need for urgent action to bolster economic and strategic resilience. She expressed that Europe should view geopolitical challenges as opportunities to enhance independence across various sectors, including security, economy, defense, and democracy.
India and the EU are on the verge of finalizing the landmark FTA on January 27, following the Republic Day celebrations where top EU leaders will be present as chief guests. The agreement will be formally announced after the adoption of a document by both parties, initiating the necessary legal processes for ratification by the European Parliament and Council. Additionally, discussions are underway to sign agreements on security and defense partnership, as well as enhancing mobility for Indian professionals seeking employment in the EU.
European Council President Antonio Costa and European Commission President von der Leyen will participate in India’s 77th Republic Day celebrations and co-chair the summit. Notably, a military contingent from the EU will partake in the Republic Day parade for the first time, underscoring the deepening strategic ties between the two entities. The trade deal, encompassing goods and services, is poised to be India’s most extensive agreement yet with the 27-nation European Union, a key export market for the country.
