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Informist, Tuesday, Jan. 27, 2026

 

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--EU: Agreed to deepen supply chain security under FTA with India 
--EU: Signed rules of origin pact to ensure no re-export benefit taken 
--EU: India to cut tariffs on sausages, other meat preparations to 50% 
--EU: India to cut tariffs on sheep meat to 0% from 33% under FTA 
--EU: India to cut tariffs on biscuits, pet food, pastries to 0% under FTA 
--EU: India to cut tariffs on bread, pasta, chocolate to 0% under FTA 
--EU: India to cut tariffs on fruit juices, non-alcoholic beer to 0% 
--EU: India to cut tariffs on spirits to 50% from upto 150% under FTA 
--EU: India to cut tariffs on beer to 50% from 110% under FTA 
--EU: India to cut tariffs on 20% of pearls, precious stones, metals to 0% 
--EU: India to cut tariffs on 90% of medical, surgical equipment to 0% 
--EU: India to cut duty on cars to 10% with quota of 250,000 under FTA 
--EU: India to cut tariffs on plastics to 0% under FTA 
--EU: India to cut tariffs on aircraft to 0% from upto 11% under FTA 
--EU: India to cut tariffs on chemicals to 0% from upto 22% under FTA 
--EU: India to cut tariffs on Iron and steel to 0% from upto 22% under FTA 
--EU: India to cut tariffs on pharmaceuticals to 0% from 11% under FTA 
--EU:FTA to grant EU cos privileged access to India maritime transport sector 
--EU: FTA to grant EU cos privileged access to India fincl services sector 
--EU: FTA to grant EU cos privileged access to the Indian services market 
--EU: Separately working with India to sell more farm pdts in India 
--EU: To provide India 500 mln euro over 2 yrs for climate action 
--EU: To launch platform with India in 2026 for climte action cooperation 
--EU: To provide 500 mln euro in 2 yrs to India for climate action 
--EU: Pdts such as rice, sugar excluded from liberalisation in India FTA 
--EU: Pdts such as beef, chicken excluded from liberalisation in India FTA 
--EU: India to cut duty on olive oil to 0% from 45% in 5 yrs under FTA 
--EU: India to eliminate tariff upto 50% on processed agri pdts under FTA 
--EU: India to eventually cut tariffs on wines to as low as 20% under FTA 
--EU: India to cut tariffs on wines to 75% from 150% under FTA 
--EU: India to mostly eliminate duty on machinery, pharma, chemicals 
--EU: India to cut prohibitive tariffs on agri-food products under FTA 
--EU: India to fully abolish duty on car parts in 5-10 yrs under FTA 
--EU: India to gradually cut tariffs on cars from 110% to 10% under FTA 
--EU: India to cut tariff on 96.6% of import value from EU under FTA 
--EU: FTA with India to help double bilateral trade by 2032 
--Govt: EU to consider future carbon trading rule in India under its CBAM 
--Govt: Import quotas for EVs to start in 5th year of EU FTA 
--Govt: To protect India EV market in calibrated approach under EU FTA 
--Govt: Indian cars to get duty-free access under FTA with EU 
--Govt: EU to provide help to cut carbon emissions under FTA 
--Govt: EU FTA to extend flexibility under carbon tax for equal footing 
--Govt: EU to offer nil duty on textiles, footwear, base metals under FTA 
--Govt: EU to offer nil duty on India's marine pdts, chemicals under FTA 
--Govt: Steel, farm, dairy sector not covered under FTA with EU 
--Govt: Average tariff for EU to fall to 0.1% from 3.8?ter FTA 
--Govt: Talks ongoing for investment treaty with EU 
--Govt: EU to offer duty cut on 99% tariff lines under FTA, India on 97%

 

NEW DELHI – The tariff elimination commitments by India and the European Union under the recently concluded free trade agreement will help double bilateral trade between the two sides by 2032. While New Delhi has offered to cut duty on 96.6% of the export value of the EU, Brussels has committed to cut duty on 99% of Indian export value under the trade deal.

 

The trade talks that began in 2023 concluded on Monday during the visit of European Commission President Ursula von der Leyen and European Council President Antonio Costa in New Delhi. The EU accounts for more than 15% of India's total exports. India shipped goods worth $78.85 billion to the bloc in 2024–25 (Apr–Mar) and posted a trade surplus of $15.17 billion.

Under the trade deal, India will cut tariffs to 0% on plastics, aircraft, chemicals, iron and steel, pharmaceuticals, sheep meat, biscuits, pet food, pastries, bread, pasta, chocolate, fruit juices, non-alcoholic beer, 20% of pearls, precious stones and metals, and 90% of medical and surgical equipment, the European Commission said in a statement. India will also bring down duty on olive oil to 0% in five years. India, on other hand, will get duty-free market access to products from sectors like textiles, footwear, base metals, marine products, and chemicals.

 

A key highlight of the deal includes New Delhi's commitment to slash duty on cars to 10% from 110% in a phased manner in 5–10 years. The duty cut on cars also entails a quota of 250,000 per year, the European Commission said. India will also fully abolish duty on auto components in 5–10 years.

 

India has offered to cut duty on wine to 75% initially and then to 20% under the trade deal. New Delhi will cut tariffs on spirits and beer to 50% from 110–150%.

 

Both sides have agreed to keep each other's sensitive sectors out of the trade deal. These include India's farm, dairy and steel sector, and the EU's rice, sugar, beef, and chicken. 

 

India has also committed to slash up to 50% tariff on processed agri products. With this, the average tariff for the EU will come down to 0.1% from 3.8%, the government said. The FTA will also grant EU companies privileged access to India's financial services sector.

 

India and the EU have also decided to set up a technical group for recognition of carbon prices and recognition of verifiers to address New Delhi's concerns over Brussels' regulation on Carbon Border Adjustment Mechanism, a provision seen by India as non-tariff barrier. The European Commission implemented its Carbon Border Adjustment Mechanism on Jan. 1, which entails a duty based on the reported carbon content in the shipments entering the EU. Resolving differences over the Carbon Border Adjustment Mechanism was the final and most challenging leg of the negotiations between the two parties.

 

The two sides will also launch a platform in the first half of 2026 for cooperation on climate action. The EU has also committed financial assistance of 500 million euros (around $590 million) to India over two years to mitigate India's greenhouse gas emissions. The EU has also assured that it will extend flexibility to India in case it offers relief to any other nation under its carbon tax regime. And in future, when India launches its own carbon tax system, the EU will factor in the regime.  

 

Under the FTA, Indian cars will get duty-free access to the EU market. The reciprocal market access will also open up opportunities for Indian automobile manufacturers, the government said, adding that it will protect India's electric vehicle market "in calibrated approach" under the agreement. The FTA will ease business travel between the two economies, along with entry and working rights for family members of intra-corporate transferees.

 

India has also secured access for practitioners of Indian traditional medicine to work under home title in EU member states where traditional medical practices are not regulated.

 

"The India-EU trade deal, along with India's FTA with the UK and the European Free Trade Association, effectively opens up the entire European market for Indian businesses, exporters and entrepreneurs," the government said. End

 

US$1 = INR 91.66

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Kritey Ambey and Asim Khan

Edited by Akul Nishant Akhoury

 

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