India-EU FTA: EU chief says on cusp of historic trade pact, calls it 'mother of all deals'

• EU and India near finalising a historic free trade agreement
• Deal could create a market of 2 billion people, covering a quarter of global GDP
• Sensitive agricultural goods will be excluded from the agreement

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European Commission President Ursula von der Leyen said on Tuesday that the European Union is close to finalising a free trade agreement with India, though some work remains to seal the deal.

During a speech at the World Economic Forum in Davos on Tuesday, the EU chief said that both sides are on the "cusp of a historic trade deal", signalling that the pact could be signed soon. She also described it as the "mother of all deals".

"There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals. One that would create a market of 2 billion people, accounting for almost a quarter of global GDP," she said in a section of her speech on EU efforts to diversify its trade.

Von der Leyen is expected to visit India early next week and will be the chief guest at the Republic Day parade on January 26 along with other European leaders.

Commerce and industry minister Piyush Goyal had also described the proposed FTA as the “mother of all deals”. "We have done FTA deals with seven developed countries so far. This one (EU) will be the mother of all. It will cover two of the world's most powerful economies. We have very good growth possibilities," Goyal said in New Delhi.

Moneycontrol had reported earlier that sensitive goods in agriculture will be kept out of the free trade agreement between India and European Union Free Trade Agreement (FTA).

Earlier this month, Commerce Secretary Rajesh Agrawal said India and the EU have fully closed 20 of the 24 negotiating chapters and are working to wrap up the remaining ones.

“We expect to conclude the talks and have the deal ready, and then we can have some kind of announcement (ahead of the leaders’ meet from January 25-27), but it depends on the progress in the next five days,” Agrawal said.