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New Delhi | European Council President António Costa on Tuesday recalled his deep personal connection with India, saying the landmark India-European Union Free Trade Agreement (FTA) holds “special meaning” for him due to his Indian roots.

Speaking at a joint press conference with Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, Costa revealed that he is an Overseas Citizen of India (OCI) and proudly traces his family origins to Goa.

“I am the President of the European Council but I am also an overseas Indian citizen. For me, it has a special meaning. I am very proud of my roots in Goa, where my father’s family came from. The connection between Europe and India is something personal to me,” Costa said, while displaying his OCI card.

Calling the moment historic, he said the agreement marks a new chapter in India-EU relations across trade, security, and people-to-people ties. Costa also recalled that the trade negotiations were relaunched during the India-EU Leaders’ Meeting in May 2021, which he hosted in his previous role.

Costa has earlier spoken publicly about his Indian heritage. Addressing a Pravasi Bharatiya Divas event in 2017, he said his family hailed from Madgaon in Goa and that he still has relatives there.

Earlier in the day, India and the European Union formally sealed the long-awaited FTA, described as the “mother of all deals,” alongside two major agreements on security and defence cooperation and the mobility of Indian professionals to Europe.

The two sides also adopted a joint strategy document titled ‘Towards 2030 – A Joint India-European Union Comprehensive Strategic Agenda,’ aimed at deepening bilateral cooperation over the next decade.

Short Summary

European Council President António Costa recalled his Goan roots and OCI status as India and the EU sealed a historic free trade agreement in New Delhi.

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The European Union is on the verge of concluding a landmark free trade agreement (FTA) with India, European Commission President Ursula von der Leyen announced on Tuesday (January 20, 2026), calling it “the mother of all deals” that could create a market encompassing nearly two billion people and about a quarter of global GDP.

Speaking at the World Economic Forum Annual Meeting in Davos, von der Leyen said negotiations are in their final stages and that Europe stands to gain a first-mover advantage with one of the world’s fastest-growing economies. “Right after Davos, I will travel to India. There is still work to do, but we are on the cusp of a historic trade agreement,” she said.

European Council President Antonio Costa and von der Leyen will visit India from January 25 to 27 to attend the Republic Day celebrations as chief guests and hold summit talks with Prime Minister Narendra Modi. The two sides are expected to formally announce the conclusion of FTA negotiations at the India-EU summit on January 27.

India is currently the EU’s largest trading partner, with bilateral trade in goods touching $135 billion in FY2023–24. The proposed agreement is expected to significantly boost trade flows, deepen supply-chain integration and open new opportunities across manufacturing, services, technology and green energy sectors.

Beyond trade, the summit is also likely to deliver major strategic outcomes. India and the EU are expected to unveil a defence and security framework, along with a comprehensive strategic vision for the 2026–2030 period. A proposed Security and Defence Partnership (SDP) would enhance defence interoperability and enable Indian firms to participate in the EU’s SAFE programme a €150 billion financial instrument aimed at strengthening European defence readiness.

Negotiations for a Security of Information Agreement (SOIA) are also expected to be launched, which would facilitate deeper industrial defence cooperation. The developments come amid global trade disruptions driven by Washington’s evolving tariff policies, which have affected both India and the 27-nation EU bloc.

India and the EU have been strategic partners since 2004. FTA talks were first launched in 2007 but were suspended in 2013 due to differences in ambition, before being relaunched in June 2022. If concluded, the deal would mark one of the most significant trade agreements for both sides in recent decades.

📌 Short Summary

The European Union is close to finalising a landmark free trade agreement with India, described by Ursula von der Leyen as “the mother of all deals.” Expected to be announced during the India-EU summit on January 27, the agreement aims to deepen trade, defence and strategic cooperation at a time of global trade uncertainty.

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Microsoft’s substantial $13 billion investment in OpenAI is now under scrutiny by the European Union (EU) for a possible merger investigation. The European Commission is examining whether Microsoft’s investment in OpenAI falls within the scope of the EU’s merger rules. If conditions warrant, regulators may launch a formal probe to determine the permissibility of the arrangement. This move by the EU follows a similar action by the UK’s Competition and Markets Authority.

Microsoft’s investment in OpenAI, which has amounted to $13 billion, has significantly benefited the software giant. Integration of OpenAI’s products into Microsoft’s core businesses has positioned the company as the leading player in AI among major tech firms, surpassing rivals such as Alphabet Inc.’s Google.

The recent events at OpenAI, including the temporary removal and subsequent reinstatement of Sam Altman as chief, revealed the deep interconnection between Microsoft and OpenAI. Microsoft’s CEO, Satya Nadella, played a direct role in negotiating and advocating for Altman’s return to OpenAI, demonstrating the close ties between the two entities.

In addition to investigating the Microsoft-OpenAI investment, the EU’s antitrust enforcers have called for feedback on competitive issues related to generative artificial intelligence and virtual worlds. The commission is keen on understanding potential competition concerns and monitoring AI partnerships to ensure they do not distort market dynamics.

The EU highlighted the significant growth in venture capital investment in AI within the region, estimated at over €7.2 billion in 2023. Moreover, the virtual worlds market in Europe is estimated to have surpassed €11 billion in 2023. The exponential growth in these industries is expected to have a profound impact on how businesses compete.

As regulatory bodies closely examine the tech landscape, Microsoft’s investment in OpenAI becomes a focal point in assessing potential antitrust implications within the rapidly evolving AI and virtual worlds sectors.

Feedback Call on AI and Virtual Worlds Competition Issues

The EU’s competition commissioner, Margrethe Vestager, emphasized the invitation for businesses and experts to provide insights into competition issues in generative artificial intelligence and virtual worlds. The commission is committed to preventing any undue distortion of market dynamics while fostering an environment that encourages innovation and fair competition.

This investigation reflects the EU’s proactive approach to addressing emerging challenges in the tech industry and ensuring a competitive landscape that benefits consumers and promotes innovation.

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The Partnership for Global Infrastructure and Investment (PGII) is a new initiative launched by the United States and other G20 countries to mobilize private and public investment in infrastructure projects in developing countries. The IMEC is an economic corridor that connects India, the Middle East, and Europe. It is a key part of the PGII initiative.

The PGII aims to mobilize $2 trillion in investment in infrastructure projects over the next five years. The projects will focus on areas such as clean energy, transportation, water, and digital infrastructure. The IMEC is expected to be a major beneficiary of the PGII initiative.

The IMEC is a proposed network of roads, railways, pipelines, and other infrastructure that would connect India, the Middle East, and Europe. It would be a major boost to trade and investment between these regions. The IMEC is expected to cost around $1 trillion to build.

The PGII and the IMEC are both important initiatives that have the potential to make a significant impact on the global economy. They could help to promote economic growth, create jobs, and improve the lives of millions of people.

Here are some of the key benefits of the PGII and the IMEC:

  • They could help to bridge the infrastructure gap in developing countries.
  • They could promote economic growth and job creation.
  • They could improve the lives of millions of people.
  • They could help to reduce poverty and inequality.
  • They could make the world a more interconnected and prosperous place.

The PGII and the IMEC are still in their early stages, but they have the potential to be major game-changers. They could help to shape the global economy for decades to come.

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