Trade pact set to slash 90 per cent of tariffs and reshape global supply chains as EU-India strategic and defence ties reach unprecedented levels<\/p>\n
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 \u201cmother of all deals\u201d at record speed.<\/p>\n
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.<\/p>\n
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\u201cWe are committed to signing the agreement by the end of the year and making it fully operational at record speed,\u201d von der Leyen stated during a joint press briefing.<\/p>\n
\u201cOur EU-India agreement\u2014the mother of all deals<\/a>!\u2014heralds a new era in our relations. We\u2019re working hard to have it applied this year to fast-forward its benefits for our people and businesses,\u201d she added.\u00a0\u00a0<\/p>\n Also read | A two-billion-person market<\/p>\n The ambitious trade pact, the framework of which was initially concluded in late January, will unite the world\u2019s two largest democracies into a massive shared marketplace.<\/p>\n The deal encompasses a consumer base of over 2 billion people, accounting for roughly one-quarter of global GDP.<\/p>\n 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\u2019s fast-growing economy.<\/p>\n Committed to sign India, EU trade deal by end of year, & make it fully operational at a “record speed”, says EU’s Ursula Von Der Leyen; Pitches for India EU investment agreement which will help in ‘derisking’ pic.twitter.com\/CNrFiSfAcp<\/a><\/p>\n \u2014 Sidhant Sibal (@sidhant) May 17, 2026<\/a>STORY CONTINUES BELOW THIS AD<\/p>\n 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.<\/p>\n \u201cTrade is only half of the equation,\u201d she explained.<\/p>\n \u201cAn 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,\u201d she continued.<\/p>\n Geopolitical stability and defence convergence<\/p>\n The PM Modi welcomed progress on the trade deal, saying it will create big opportunities for businesses and innovation. He highlighted India\u2019s fast-growing infrastructure, digital systems and clean energy push, urging European companies to see India as a stable and trusted partner.<\/p>\n STORY CONTINUES BELOW THIS AD<\/p>\n 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.<\/p>\n \u201cIn today\u2019s tense global situation,\u201d Modi added, \u201cclose cooperation between democracies like India and Sweden, and the broader European Union, holds special significance.”<\/p>\n First Published: Home<\/a>India<\/a>\u2018Mother of all deals\u2019: EU Chief Ursula von der Leyen vows to sign India-EU trade pact by year-endEnd of Article
\nPM Modi receives Sweden\u2019s prestigious Royal Order of the Polar Star, his 31st global honour so far<\/a><\/p>\n
\nmeetings in Gothenburg<\/a> showed stronger ties between India and Europe, as both sides look to build stronger supply chains amid growing global uncertainty.<\/p>\n
\nMay 18, 2026, 07:15 IST<\/p>\n