India, EU on cusp of ‘mother of all deals’, says Ursula von der Leyen in Davos

NEW  new delhi:  republic of india and the European unification (EU) ar on the “ leaflet of a historic trade agreement” that will create a market of two billion people and account for nearly a fourth of global GDP, European Commission President Ursula von der Leyen said on Tuesday, ahead of a visit to New Delhi for a summit that is expected to lead to the conclusion of talks for the deal.The India-EU free trade agreement – being described as the “mother of all deals” – will give the 27-member bloc a first-mover advantage with one of the world’s fastest growing and most dynamic continents at a time when at a time when geopolitical shocks require that Europe should build a new form of independence, von der Leyen said in an address at the World Economic Forum in Davos.European Council President Antonio Costa and Von der Leyen will be in India on January 25-27 to be the chief guests at the Republic Day celebrations and for a summit with Prime Minister Narendra Modi. A formal announcement on the conclusion of FTA negotiations is expected to be the main deliverable at the summit.Von der Leyen said in her address that Europe wants to do business with the growth centres and economic powerhouses, from Latin America to the Indo-Pacific. “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,” she said.“Some call it the mother of all deals. One that would create a market of two billion people, accounting for almost a quarter of global GDP. And crucially, that would provide a first-mover advantage for Europe with one of the world’s fastest-growing and most dynamic continents.”The EU is India’s biggest trade partner, with trade in goods worth $135 billion in 2023-24. The FTA, which is expected to be signed later this year, will significantly bolster trade between India and EU member states at a time when countries are focused on derisking amid trade disruptions caused by the policies of the Trump administration in the US.India and the EU resumed talks on the FTA in 2022 after a gap of almost a decade, and the negotiations have been spurred in recent months by the geo-economic churn and unpredictability on the global stage.Besides the conclusion of talks on the trade deal, the two sides are expected to finalise a Security and Defence Partnership to drive defence industry collaboration and an agreement to facilitate the mobility of Indian workers and professionals.Von der Leyen also referred to geopolitical challenges and opportunities in her address at a time of growing concerns in Europe over US President Donald Trump’s efforts to take control of Greenland. “The world may be very different today, without any question. But I believe the lesson is very much the same. That geopolitical shocks can – and must – serve as an opportunity for Europe,” she said.“In my view, the seismic change we are going through today is an opportunity, in fact, a necessity to build a new form of European independence. This need is neither new nor a reaction to recent events.”The EU, she said, has acted to address challenges ranging from energy and raw materials to defence and digital. “But the truth is also that we will only be able to capitalise on this opportunity if we recognise that this change is permanent,” she said.“Whether on trade or business, capital or energy, Europe needs an urgency mindset. Our starting point is good. We are home to global champions in fields ranging from wind power to next-generation batteries,” she said. “From aerospace to the industrial machines that are essential to build chips or advanced weapons. Our companies are taking up AI at the same pace as their US peers.”In defence alone, Europe has done more in the past year than in decades, and there has been a surge in spending to 800 billion euros until 2030, she said.