India-EU Free Trade Agreement 2026: Davos Highlights & Republic Day Summit Agenda

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Davos Updates: In a major diplomatic breakthrough, European Commission President Ursula von der Leyen has confirmed that India and the European Union are in the final stages of negotiating a monumental Free Trade Agreement (FTA). Speaking at the World Economic Forum (WEF) in Davos, she highlighted the strategic importance of this partnership for the global economy.

Historic Economic Partnership

During her address to global leaders, von der Leyen highlighted that the negotiations have reached a critical stage. She emphasized that this deal would be transformative, integrating a combined market of nearly two billion people.

If signed, the India-EU FTA would cover nearly one-quarter of the Global GDP, creating one of the largest economic zones in the world.

Upcoming Visit: Republic Day 2026

The urgency of the deal is underscored by President von der Leyen’s upcoming travel plans. She confirmed that she will travel to India immediately after the Davos summit.

According to the Ministry of External Affairs (MEA), both Ursula von der Leyen and European Council President Antonio Luis Santos da Costa will be visiting India from January 25 to 27, 2026. They have been invited by Prime Minister Narendra Modi to be the Chief Guests at India’s 77th Republic Day celebrations.

Focus Areas of the Trade Deal

This comprehensive trade pact is expected to be more than just tariff reductions. It aims to cover strategic sectors including:

• Digital Trade: Collaboration on tech infrastructure.
• Green Energy: Investments in sustainable technologies.
• Supply Chains: Securing critical raw materials and pharmaceuticals.

16th India-EU Summit

On January 27, 2026, PM Modi will co-chair the 16th India-EU Summit with the European leaders. An India-EU Business Forum will also be organized to allow industry leaders from both regions to explore new investment avenues.