We have created a free trade area of two billion people, which will benefit both sides, von der Leyen adds.
The statement was made during a visit to New Delhi, where the agreement will be signed in connection with a summit between the EU and India.
Counting on an Indian boost
Indian Prime Minister Narendra Modi was the first to announce that a free trade agreement had been reached. He said the agreement would strengthen trade and supply chains between the EU and India, which he expects will boost India's industry and services sectors.
It will boost the confidence of investors and businesses in India, he said.
The agreement involves reduced tariffs on most consumer and industrial goods and is also reportedly expected to open up more exports of European cars to India. But it is not expected to cover certain sensitive agricultural goods. It comes after a year in which trade conflicts have become part of everyday global politics, with the Trump administration's recurring tariff threats against both the EU and India.
Summit on Tuesday
The details of the agreement are expected to be announced after the summit between Modi and von der Leyen on Tuesday.
India – currently the EU's ninth largest trading partner – has entered into similar free trade agreements with the UK, Oman and New Zealand since the Trump administration imposed 50 percent tariffs on Indian goods last year.
For its part, the EU signed a trade agreement with the Mercosur countries in South America, including Brazil and Argentina, earlier in January, which will remove most of the current tariffs between the regions.
