A giant trade deal or free trade agreement (FTA) slashes tariffs on almost 97 per cent of European exports to India, potentially making a range of products such across sectors such as agriculture and automobiles cheaper for Indians going forward.
Tariffs on 96.6 per cent of European Union goods exports will be eliminated or reduced under the India-EU trade agreement, signing of which was first announced by Prime Minister Narendra Modi on Tuesday. (PMO photo)
Tariffs on 96.6 per cent of European Union goods exports will be eliminated or reduced under the India-EU trade agreement, signing of which was first announced by Prime Minister Narendra Modi on Tuesday. Track India-EU trade deal live updates
This will result on saving of up to €4 billion per year in duties on European products.
The trade agreement – “largest that both the EU and India have ever concluded” – will see tariffs on EU exports, including chocolates, wines and cars, go down from 50 to 150 per cent to as low as zero to 20 per cent.
What gets cheaper for IndiansFull list of EU industrial goods that will see a tariff cut
Full list of EU agricultural goods that will see a tariff cut
EU said the deal will strengthen economic and political ties between the world’s two largest democracies at a time of “rising geopolitical tensions and global economic challenges.”
The deal will reduce tariffs and administrative burdens, making trading easier, cheaper and faster, the 27-member state bloc said.
Announcing the signing of the trade deal, Prime Minister Narendra Modi said on Tuesday this agreement will bring major opportunities for the public in India and Europe.
“This is a perfect example of a partnership between two major economies of the world…This agreement represents 25 per cent of the global GDP and 1/3rd of global trade,” he said.
EU Commission President Ursula von der Leyen hailed the signing of the “mother of all” trade agreement, saying history has been made today.