As India and the European Union move closer to sealing what is being dubbed the “mother of all trade deals” – their highly anticipated trade deal, External Affairs Minister S Jaishankar has said a deeper India-EU partnership could play a decisive role in stabilising an increasingly volatile global economy.
The remarks come days ahead of a high-stakes India-EU Summit, where both sides are expected to announce the conclusion of negotiations on the long-awaited India-EU Free Trade Agreement (FTA). It is scheduled to take place after the Republic Day 2026 celebrations on Monday (January 26, 2026).
How India-EU cooperation can be a global stabiliser?
Interacting with ambassadors of European countries on Thursday (January 22, 2026), Jaishankar said the world is entering an era where “volatility and instability are the new normal.” In this context, he argued, closer India-EU ties could help de-risk the global economy.
According to the minister, enhanced cooperation in trade, mobility, security and supply chains would strengthen the international order at a time when protectionism and geopolitical fragmentation are rising. “Made a case for stronger India-EU ties that will stabilise the global order through stronger trade, mobility and security partnership.”
How does the ‘mother of all deals’ fit into this?
The upcoming summit is widely expected to mark the formal conclusion of the India-EU FTA negotiations, a deal seen as India’s largest and most complex trade agreement so far. The EU is already India’s biggest trading partner, with bilateral goods trade touching $135 billion in FY 2023-24.
European Commisison chief Ursula von der Leyen described it as the “mother of all deals” earlier this week while speaking at the World Economic Forum in Davos. The FTA is expected to significantly expand this figure while integrating India more deeply into European supply chains.
India gears up to host European leaders
President of the European Council Antonio Costa and European Commission President Ursula von der Leyen will be on a state visit to India from January 25 to 27. The two leaders will attend India’s 77th Republic Day celebrations as chief guests, underscoring the political importance Brussels attaches to the partnership.
They will also hold summit-level talks with Prime Minister Narendra Modi on January 27.
What other deliverables are expected at the Summit?
Beyond the trade agreement, the summit is likely to unveil a new India-EU defence cooperation framework, a strategic agenda covering security, technology and mobility, measures to strengthen resilient and diversified supply chains. These initiatives gain added significance amid global trade disruptions triggered by US President Donald Trump’s tariff policies and broader geopolitical uncertainty.
EU Ambassador to India Hervé Delphin described Jaishankar’s interaction with EU envoys as “excellent,” highlighting the high convergence of interests between India and Europe. “Benefits are mutual and global. All eyes on next week’s EU-India Summit and its deliverables,” Delphin said in a post on X.
India and the EU have been strategic partners since 2004, but officials on both sides suggest the upcoming summit could mark a qualitative leap in the relationship.
Worth noting here is that with the global economy facing trade fragmentation, supply chain shocks and geopolitical rivalry, the India-EU FTA is being seen as a rules-based counterweight, linking two large democratic economies committed to open markets and multilateralism.
If concluded as expected, the agreement could reshape global trade flows, reinforce economic security, and set the tone for India-EU cooperation in the coming decade.