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Informist, Tuesday, Jan. 27, 2026

 

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--Goyal: EU to give preferential treatment to India under carbon tax norms 
--Minister Goyal: Should be able to enforce EU FTA by 2026 end 
--Minister Goyal: To expedite legal scrubbing of India-EU FTA document 
--CONTEXT: Trade Minister Goyal briefing media on India-EU FTA 
--Minister Goyal: India to cut duty on high-end cars from EU under FTA

 

NEW DELHI – India and the European Union aim to enforce the recently concluded free-trade agreement by the end of 2026, Commerce Minister Piyush Goyal said Tuesday. The two sides intend to fastrack the legal scrubbing of the document of the trade deal, Goyal added.

 

The trade deal, concluded Monday, offers to cut tariff on over 95% of export value for both sides. With these provisions, the India-EU agreement aims to double bilateral trade by 2032.  

 

The bilateral goods trade between India and the EU was $64 billion in 2024-25 (Apr-Mar).

 

A key highlight of the trade deal is New Delhi's commitment to cut duty on cars to 10% from 110% in a phased manner with a quota of 250,000 cars per year. The duty cut would be only on high-end cars of over 15,000-20,000 euros (nearly $18,000 to $24,000), Goyal said while briefing the media on the trade agreement. 

 

The trade deal also addresses New Delhi's concerns over Brussels' Carbon Border Adjustment Mechanism--seen by Indian exporters as a non tariff barrier. While answering a question on the EU's climate regulation and their direct impact on Indian steel exports, Goyal said, "We have agreed in good faith to work together towards a preferential treatment as a free trade agreement-partner so that India gets a better deal than any other country with whom EU does not have an FTA." 

 

Both the sides have agreed to set up a technical group to facilitate Indian industries' smooth access to the EU market despite the carbon regulation, Commerce Secretary Rajesh Agrawal, who was also present at the briefing, said. "We will be working together to see that verifiers of CBAM in India are also accredited by the EU agencies so the industry can access them. We will also be working together to understand the process by which carbon measurement will be done in both the economies," Agrawal said.

 

Brussels implemented its Carbon Border Adjustment Mechanism on Jan. 1, which entails duty collection based on reported carbon content in the shipments entering the EU. The European Commission has committed under the trade deal that they would take into account India's carbon trading system, whenever New Delhi implements it in the future, under its CBAM regulation.  End

 

US$1 = INR 91.72

 

Reported by Krity Ambey and Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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