Lower auto tariffs, wider market access: What the India-EU trade deal may look like
India Today
India-European Union trade negotiations have reached a decisive stage, with New Delhi offering major tariff cuts on European cars and both sides signalling readiness to seal a politically significant deal that could reshape trade, investment and supply chains.
India and the European Union are closer than ever to clinching a landmark free trade agreement (FTA), with negotiators in New Delhi racing to finalise the last remaining issues.
Senior EU leaders are in the capital for high-level meetings, and officials on both sides say an “agreement in principle” could be announced any day. After nearly two decades of stalled attempts, this is the most decisive moment the talks have seen.
The biggest new development is the tariff package India has put on the table. The government is ready to slash import duties on European cars, a move that would have been politically unthinkable a few years ago.
Many high-end models currently face duties as high as 110 per cent. Under the proposal being discussed, some of those cars would see that fall to 40 per cent immediately. Over time, duties for a limited number of premium vehicles could slip towards 10 per cent. This alone changes the equation for European automakers and the Indian auto market.
Officials say several technical chapters are now closed, and only a small set of politically sensitive issues remain. The mood in the negotiating rooms, according to sources, has turned sharply optimistic. If leaders decide to seal the deal this week, it would mark one of India’s boldest market openings in decades.
New Delhi wants better access to the European market for sectors like textiles, garments, gems, engineering goods and processed foods. Many of these industries lost tariff advantages when EU rules changed recently.
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Described as the "mother of all deals", India–EU trade pact is expected to boost trade, lower barriers, and deepen economic ties between the two sides.
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The deal aims to open up India's large and closely protected market to freer trade with the 27-nation European bloc, which is also India's biggest trading partner.
Senior EU leaders have described the proposed agreement as one of the biggest and most complex trade deals the bloc has ever attempted, with some calling it the "mother of all deals".
India-European Union trade negotiations have reached a decisive stage, with New Delhi offering major tariff cuts on European cars and both sides signalling readiness to seal a politically significant deal that could reshape trade, investment and supply chains.