‘Mother of all deals’: EU Chief Ursula von der Leyen vows to sign India-EU trade pact by year-end

European Commission President Ursula von der Leyen has pledged to officially sign and implement the landmark India-EU Free Trade Agreement (FTA) by the end of 2026, vowing to operationalise what she termed the "mother of all deals" at record speed.

Speaking at the European Round Table for Industry in Gothenburg, Sweden, alongside Indian Prime Minister Narendra Modi and Swedish Prime Minister Ulf Kristersson, von der Leyen said that the agreement heralds a transformative new era for global commerce.

"We are committed to signing the agreement by the end of the year and making it fully operational at record speed," von der Leyen stated during a joint press briefing.

"Our EU-India agreement—the mother of all deals!—heralds a new era in our relations. We're working hard to have it applied this year to fast-forward its benefits for our people and businesses," she added. 

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A two-billion-person market

The ambitious trade pact, the framework of which was initially concluded in late January, will unite the world's two largest democracies into a massive shared marketplace.

The deal encompasses a consumer base of over 2 billion people, accounting for roughly one-quarter of global GDP.

The agreement will implement sweeping tariff cuts on over 90 per cent of goods, potentially eliminating billions of euros in annual duties and granting European companies unprecedented access to India’s fast-growing economy.

However, trade is only the first step. Von der Leyen hinted that a comprehensive bilateral investment agreement is already being fast-tracked as the next crucial phase of the partnership.

"Trade is only half of the equation," she explained.

"An investment agreement is the missing piece of the puzzle in our reinforced economic cooperation, especially in a world where supply chains are being reshaped and economic security challenges are as never before. One can say the trade agreement opened the door. An investment agreement walks us through this door," she continued.

Geopolitical stability and defence convergence

The meetings in Gothenburg showed stronger ties between India and Europe, as both sides look to build stronger supply chains amid growing global uncertainty.

PM Modi welcomed progress on the trade deal, saying it will create big opportunities for businesses and innovation. He highlighted India’s fast-growing infrastructure, digital systems and clean energy push, urging European companies to see India as a stable and trusted partner.

The partnership is also expanding into defence and cybersecurity. European Commission President Ursula von der Leyen said India and the EU are increasing maritime cooperation, with joint naval exercises planned in the future.

"In today's tense global situation," Modi added, "close cooperation between democracies like India and Sweden, and the broader European Union, holds special significance."