Davos: The European Union and India are on the verge of signing a historic trade deal. The trade agreement is being touted as ‘the mother of all deals’, European Commission President Ursula von der Leyen announced on Tuesday.
Leyen said India-EU trade agreement will create a market for 2 billion people or about one-fourth of the global GDP.
Why Europe prioritises India’s dynamic economy
Addressing the World Economic Forum (WEF) Annual Meeting, the EU president she said the India-European Union trade deal would crucially provide a first-mover advantage for Europe with one of the world’s fastest-growing and most dynamic continents, PTI reported.
“Right after Davos, I will travel to India. There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals,” she said.
“Europe wants to do business with the growth centres of today and the economic powerhouses of this century.
“From Latin America to the Indo-Pacific and far beyond, Europe will always choose the world. And the world is ready to choose Europe,” she added.
President of the European Council, Antonio Costa and von der Leyen will visit India from January 25 to 27 to grace the Republic Day celebrations as chief guests. Both will hold summit talks with Prime Minister Narendra Modi.
India and EU are expected to announce the conclusion of negotiations on the much-awaited free trade agreement at the India-EU summit on January 27.
The European Union is India’s biggest trade partner. The bilateral trade in goods stood at USD 135 billion in the financial year 2023-24 between the two.
The India-EU trade deal would be very beneficial for both as the US President Donald Trump’s trade and tariff policies have impacted both India and the 27-nation EU.