India-EU Trade Deal: Historic FTA Expected on 27 January, Creating Market for 2 Billion People

New Delhi: The world is watching closely as India and the European Union (EU) move toward finalizing a historic Free Trade Agreement (FTA). The formal announcement of the deal is expected on 27 January 2026, a day after India’s Republic Day celebrations, with top EU leaders attending as chief guests.

Europe Calls It the “Mother of All Deals”
Ursula von der Leyen, President of the European Commission, said the EU is very close to finalizing the FTA with India. Addressing the World Economic Forum in Davos, she referred to the deal as “the mother of all deals” and emphasized Europe’s desire to expand trade and cooperation globally.

Creating a Market of 2 Billion People
Von der Leyen highlighted the scale of the proposed agreement, which would create a market for 2 billion people, representing nearly a quarter of the world’s GDP. She also announced her upcoming visit to India next weekend to advance work on the trade agreement, reinforcing efforts to strengthen economic ties and deepen cooperation between India and Europe.

Key Events of the Visit

• European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen will be chief guests at India’s 77th Republic Day on 26 January.
• From 25 January, both leaders will be on a three-day official visit to India.
• On 27 January, they will co-chair the 16th India-EU Summit.
• Meetings are scheduled with President Draupadi Murmu and Prime Minister Narendra Modi at both limited and delegation levels.
• The visit will also host the India-EU Business Forum, aimed at fostering commercial collaboration.

Boost to Trade with a Key Partner
Dr. Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), said the FTA will expand trade with one of India’s largest trading partners and help address tariff-related challenges. Dr. Mukesh Kasal, Chairman of CTA Apparels, called the FTA a historic opportunity for India’s garment and textile sector, noting that lower or duty-free exports will give Indian exporters a competitive edge in global markets.

Significance of the Deal
The India-EU FTA is expected to strengthen bilateral relations and enhance cooperation across sectors including trade, investment, energy, and defense. Beyond regional benefits, the agreement could have a significant global economic impact, demonstrating how collaboration between two major economic blocs can create new opportunities worldwide.