US EditionIndia plans to slash car tariffs to 40% in trade deal with EU: Reuters
- On Tuesday, India plans to cut import tariffs on EU cars to 40% from as high as 110%, with immediate reductions for a limited set of models, sources said.
- Geopolitical and trade pressures have pushed negotiators toward compromise as the European Union seeks supply‑chain diversification and India aims for technology, investment, and access to its $4.2 trillion economy.
- Negotiators say the tariff path will be phased, reaching about 10% over time, while battery electric vehicles will be excluded from duty cuts for five years to protect Mahindra & Mahindra and Tata Motors.
- Lower taxes will let carmakers price imported models more competitively and test demand, while investors and suppliers line up new investment as the Indian market expected to grow to 6 million units a year by 2030.
- If signed, the pact will still need European Parliament approval, which could take at least a year, while the Carbon Border Adjustment Mechanism and agriculture and dairy remain unresolved.
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138 Articles
The Free Trade Pact has been named "mother of all agreements".
Even before the trade summit with the EU, a partner country seems to be planning a deal. According to this, the country wants to reduce tariffs on EU cars to 40 percent.
India opens its car market to the EU and drastically reduces tariffs on imported cars. European manufacturers benefit from new opportunities and cheaper prices.
European Council President Antonio Costa and European Commission President Ursula von der Leyen attended India's Republic Day military parade in New Delhi today as guests of honour. Costa and von der Leyen will attend Tuesday's EU-India summit, where the two sides are expected to conclude a free trade agreement.
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- 48% of the sources lean Right
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