India and EU Near Historic Free Trade Agreement Ahead of Republic Day Summit

The European Union and India are nearing the conclusion of a historic free trade agreement, described by European Commission President Ursula von der Leyen as the 'mother of all deals.' The pact aims to create a combined market of two billion people, accounting for nearly a quarter of global GDP, and is expected to be announced during the India-EU summit on January 27, following their participation as chief guests at India's Republic Day celebrations. The agreement is anticipated to enhance trade ties, reduce tariffs, and provide Europe a first-mover advantage in a fast-growing region. Negotiations, ongoing since 2007, gained momentum in 2022 amid geopolitical shifts and efforts to diversify trade away from China. Alongside the trade deal, India and the EU plan to strengthen defence cooperation and mobility frameworks.