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European exporters are set to save around €4 billion ($4.7 billion) a year in import duties after India agreed to sweeping tariff cuts under a landmark free trade agreement concluded on Tuesday.
The European Commission said the savings will come as India cuts or eliminates tariffs on 96.6 per cent of EU goods exports, sharply reducing levies across key sectors such as automobiles, machinery, chemicals, pharmaceuticals and agri-food products.
India currently imposes some of the highest import duties among major economies, with tariffs reaching 110 per cent on cars, 44 per cent on machinery, 22 per cent on chemicals and 11 per cent on pharmaceuticals. Under the deal, car tariffs will be gradually lowered to as little as 10 per cent, while duties on auto components will be scrapped entirely over five to ten years.
The European Commission said the savings will come as India cuts or eliminates tariffs on 96.6 per cent of EU goods exports, sharply reducing levies across key sectors such as automobiles, machinery, chemicals, pharmaceuticals and agri-food products.
India currently imposes some of the highest import duties among major economies, with tariffs reaching 110 per cent on cars, 44 per cent on machinery, 22 per cent on chemicals and 11 per cent on pharmaceuticals. Under the deal, car tariffs will be gradually lowered to as little as 10 per cent, while duties on auto components will be scrapped entirely over five to ten years.
