India and European Union Finalize Landmark Free Trade Deal to Slash Automotive Tariffs
The finalized trade agreement between India and the EU will lower car tariffs from 110 percent to 30 percent, sparking new investments across the sector.
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India 
INand the European Union have finalized a landmark free trade agreement that significantly reduces trade barriers for the automotive sector. This deal immediately slashes import tariffs on cars from the EU to Indiafrom as high as 110 percent down to a range of 30 to 35 percent. Over the long term, these rates are expected to drop further to 10 percent, while tariffs on European car parts will be completely abolished over the next five to 10 years.
INand the European Union have finalized a landmark free trade agreement that significantly reduces trade barriers for the automotive sector. This deal immediately slashes import tariffs on cars from the EU to Indiafrom as high as 110 percent down to a range of 30 to 35 percent. Over the long term, these rates are expected to drop further to 10 percent, while tariffs on European car parts will be completely abolished over the next five to 10 years.The policy shift is expected to enhance the competitive positioning of major European manufacturers such as Volkswagen AG , Mercedes-Benz Group AG , and Bayerische Motoren Werke AG (BMW) . By lowering the cost of entry, the agreement opens new opportunities in the world's third-largest car market. For companies based in France 
FR, the deal provides a timely boost to expand their manufacturing and sales footprint within the region.
FR, the deal provides a timely boost to expand their manufacturing and sales footprint within the region.
