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Informist, Tuesday, Jan. 27, 2026

NEW DELHI – India and the European Union have agreed to a free trade agreement, which European Commission President Ursula von der Leyen has termed as "mother of all deals". The deal will strengthen trade, manufacturing, and supply chain for India. Following are the benefits to the EU under the free trade agreement, outlined by the European Commission:

* FTA with India to help double bilateral trade by 2032
* India to cut tariff on 96.6% of import value from EU under FTA
* India to gradually cut tariffs on cars from 110% to 10% under FTA
* India to fully abolish duty on car parts in 5-10 yrs under FTA
* India to cut prohibitive tariffs on agri-food products under FTA
* India to mostly eliminate duty on machinery, pharma, chemicals
* India to cut tariffs on wines to 75% from 150% under FTA
* India to eventually cut tariffs on wines to as low as 20% under FTA
* India to eliminate tariff upto 50% on processed agri pdts under FTA
* India to cut duty on olive oil to 0% from 45% in 5 yrs under FTA
* Pdts such as beef, chicken excluded from liberalisation in India FTA
* Pdts such as rice, sugar excluded from liberalisation in India FTA
* To provide 500 mln euro in 2 yrs to India for climate action
* To launch platform with India in 2026 for climte action cooperation
* To provide India 500 mln euro over 2 yrs for climate action
* Separately working with India to sell more farm pdts in India
* FTA to grant EU cos privileged access to the Indian services market
* FTA to grant EU cos privileged access to India fincl services sector
* FTA to grant EU cos privileged access to India maritime transport sector
* India to cut tariffs on pharmaceuticals to 0% from 11% under FTA
* India to cut tariffs on Iron and steel to 0% from upto 22% under FTA
* India to cut tariffs on chemicals to 0% from upto 22% under FTA
* India to cut tariffs on aircraft to 0% from upto 11% under FTA
* India to cut tariffs on plastics to 0% under FTA
* India to cut duty on cars to 10% with quota of 250,000 under FTA
* India to cut tariffs on 90% of medical, surgical equipment to 0%
* India to cut tariffs on 20% of pearls, precious stones, metals to 0%
* India to cut tariffs on beer to 50% from 110% under FTA
* India to cut tariffs on spirits to 50% from upto 150% under FTA
* India to cut tariffs on fruit juices, non-alcoholic beer to 0%
* India to cut tariffs on bread, pasta, chocolate to 0% under FTA
* India to cut tariffs on biscuits, pet food, pastries to 0% under FTA
* India to cut tariffs on sheep meat to 0% from 33% under FTA
* India to cut tariffs on sausages, other meat preparations to 50%
* Signed rules of origin pact to ensure no re-export benefit taken
* Agreed to deepen supply chain security under FTA with India
End

Compiled by Vinod Bhovad
Filed by Vandana Hingorani

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