India and the European Union are poised to finalize a significant Free Trade Agreement (FTA), with an announcement highly anticipated on January 27, 2026, during the visit of European Council President Antonio Costa and European Commission President Ursula von der Leyen to India. The EU leaders are also set to be the chief guests at India's 77th Republic Day celebrations. Union Commerce and Industry Minister Piyush Goyal has repeatedly described this upcoming pact as the 'mother of all deals,' emphasizing its unprecedented scale and potential. He noted that negotiations are in their final phase, with only a few outstanding issues remaining, which officials are confident of resolving swiftly. This agreement is deemed crucial for India, offering a vital avenue for diversifying its export markets amidst rising global protectionist sentiments and high tariffs imposed by other nations. The EU stands as India's largest trading partner, making this comprehensive pact strategically vital. The deal is expected to significantly boost India's exports in labor-intensive sectors such as textiles, pharmaceuticals, chemicals, engineering goods, and gems and jewellery, with some exporters anticipating a doubling of shipments to the EU within three years. Negotiations, which initially began in 2007, were relaunched in June 2022 after faltering in 2013 over various disagreements. Both sides have made considerable progress, with officials confirming that sensitive agricultural issues and concerns like the Carbon Border Adjustment Mechanism (CBAM) have been addressed to safeguard national interests. The agreement is envisioned as a win-win for both economies, leveraging their complementary strengths rather than competitive interests.