New Delhi: India, EU Seal ‘Mother of All FTAs’: 96% Trade to Go Tariff-Free; Small Cars and Dairy Stay Protected.
India and the European Union have officially finalised a historic Free Trade Agreement (FTA), widely described as the “mother of all FTAs.” Under the terms of the pact, about 96% of goods traded between India and the EU will gradually become tariff-free, significantly boosting market access and economic ties between the two partners.
The agreement provides zero-duty access for a wide range of Indian exports to EU markets, including textiles, marine products, leather goods, gems and jewellery, toys and sports equipment. These sectors are expected to benefit from enhanced competitiveness as tariffs are phased out over time.
However, negotiators agreed to protect certain sensitive sectors on both sides. India has shielded small cars, which form the bulk of its domestic automotive market, and dairy products from immediate tariff elimination, while cereals and other agricultural items remain outside the liberalisation scope for now.
In the automotive segment, tariff reductions will be introduced in a quota-based manner for higher-priced vehicles, with exemptions and delays set to safeguard local manufacturers. Similarly, tariffs on European wines will be lowered in phases rather than eliminated instantly.
Prime Minister Narendra Modi called the FTA the biggest trade deal in India’s history, saying it will open up new opportunities for businesses and consumers across both economies. The pact also includes provisions on services, intellectual property, visas for students, and other areas aimed at deepening strategic cooperation.
Before it comes into force, the agreement must complete legal reviews and ratification processes in both India and the EU, but officials expect implementation to begin next year, marking a milestone in bilateral trade relations.
Source & Credit : https://timesofindia.indiatimes.com/business/india-business/india-eu-seal-mother-of-all-ftas-96-trade-to-go-tariff-free-small-cars-and-dairy-stay-protected/articleshow/127609363.cms?utm_source=chatgpt.com
Pic Credit : My Gov India
