EU on Brink of Historic Trade Deal with India: Von der Leyen Ahead of Modi Meet

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European Commission President Ursula von der Leyen has hinted at a groundbreaking trade agreement between the European Union and India, which could create a massive market of 2 billion people, accounting for nearly a quarter of the global GDP. The EU leader made the remarks at the World Economic Forum in Davos, days before her trip to Delhi. The proposed deal, dubbed the 'mother of all deals,' would see the EU and India strengthen their trade ties, with the EU already being India's largest trade partner. Bilateral trade in goods stood at $135 billion in the financial year 2023-24. The Free Trade Agreement (FTA) is expected to be announced during the India-EU summit on January 27, where von der Leyen and European Council President Antonio Costa will be the chief guests. The two sides will also discuss a defence framework pact and a strategic agenda. Von der Leyen emphasized the significance of the deal, saying it would provide a first-mover advantage for Europe in the Indo-Pacific region, one of the world's fastest-growing continents. The EU wants to capitalize on opportunities in emerging markets and build a new, independent Europe. The EU's ties with the US were also discussed, with von der Leyen stating that the bloc views American people as both allies and friends. However, she emphasized the need for a strategic approach to the relationship, particularly in the context of the Russia-Ukraine war. The India-EU summit comes amid concerns over US trade policies, which have impacted both India and the EU. The proposed FTA is seen as a way for the EU to assert its economic influence and create new opportunities for growth.