Intro: India and EU finalize FTA: apparel, chemicals duty-free; cars and wines get reduced tariffs access

New Delhi

India and the European Union (EU) on Tuesday announced a landmark Free Trade Agreement (FTA), described as the “mother of all deals.” The agreement is expected to strengthen trade and investment, benefiting India and all 27 EU countries. EU officials called it India’s most ambitious trade opening, offering tariff reductions not given to any other partner. The deal will reduce tariffs on 96.6% of EU goods exported to India, potentially doubling EU exports by 2032.

Major non-agricultural products will become cheaper. European cars will see tariffs fall from up to 110% to 10%, while medicines, machinery, aircraft, medical equipment, plastics, chemicals, and iron will largely face zero duties. Jewelry and precious stones will also attract lower tariffs.

Agricultural products will benefit too. Wine, spirits, beer, olive oil, fruits, processed foods like pasta and biscuits, and sheep meat will see significant tariff cuts. Savings are expected to reach around 4 billion euros annually, encouraging trade, lowering prices, and boosting India-EU economic cooperation.

India and the European Union on Tuesday announced the conclusion of a historic free trade agreement (FTA), hailed as the “mother of all deals.” The pact will give duty-free access to Indian goods like textiles, apparel, chemicals, footwear, marine products, and gems in the 27-nation EU, covering over 93% of exports, with remaining goods receiving phased or quota-based tariff cuts. The EU will get concessional duty on cars, wines, and 97.5% of its exports to India over time. The agreement, finalised after two decades of talks, is expected to create a market of around 2 billion people.