Davos, Jan. 20 -- The European Union is close to finalising a free trade agreement with India, though some steps are still pending to complete the deal, European Commission President Ursula von der Leyen said while addressing the World Economic Forum in Davos on Tuesday.

"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 focused on the EU's efforts to broaden and diversify its trade partnerships.

She further linked the trade push to upcoming high-level engagement, saying she will travel to India next weekend after the conclusion of the...