US EditionIndia-EU Trade Deal to Cut Import Duties on Textiles, Footwear, Cars, Wines and More: Report
The agreement aims to boost trade and economic integration, with India cutting car tariffs to 40%, addressing a trade imbalance where exports fell 0.1% and imports rose 2.2%, officials said.
- Negotiations concluded on Friday, January 23, 2026, with Commerce Secretary Rajesh Agrawal calling it a balanced, forward-looking deal, and leaders of India and the EU set to sign it on Tuesday.
- Agrawal noted the pact was finalised after 18 years of talks launched in 2007 as India's exports to the EU contracted 0.1% while imports grew 2.2%, with the FTA aiming to rebalance trade by securing concessions for Indian goods.
- Gulzar Didwania said India’s bilateral trade with the EU was USD 136.53 billion in 2024-25, with 97% of tariff items covered, benefiting sectors like apparel where duties will be slashed.
- Implementation will take time because the agreement requires EU Parliament approval while India needs only the Union Cabinet nod, and the legal scrubbing process will follow negotiations, Agrawal said.
- Gulzar Didwania projected the deal could add another 50 billion dollars to India exports in five years, help diversify exports from the US to the EU, and boost European exporters of machinery and capital goods.
48 Articles
48 Articles
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der Standard AT
der Standard DEThe EU and India are moving closer together economically: representatives want to sign a free trade agreement on Tuesday in New Delhi. It provides for the reduction of almost all tariffs on EU products – mainly cars, wine and pasta
Under trade deal with India, EU to slash tariffs on 99% goods--steel, wine & gems among them
Tariff cuts with the European Union will lead to more exports in labour-intensive sectors that will help partly offset the impact of US tariffs, a former Indian trade official said.
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