Historic EU-India trade deal to slash auto tariffs, double bloc’s India exports by 2032

After nearly 20 years of negotiations, the European Union and India have finalized a free-trade agreement in New Delhi. The deal aims to reduce or eliminate tariffs on 96.6% of EU exports to India, potentially doubling the bloc's goods exports to the country by 2032. Key benefits for the EU include reduced tariffs on machinery, aircraft, and medical equipment, as well as a significant reduction in import taxes on automobiles from 110% to 10% with a quota of 250,000 vehicles per year. The EU hopes this agreement will diversify trade ties and alleviate tariff pressures from the US and a trade deficit with China. While announced on Tuesday, the agreement still requires ratification and could take months to finalize and implement.

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