By Raveena Kumari 
India and the European Union have agreed to significantly cut tariffs on automobiles, spirits, and textiles under a landmark Free Trade Agreement (FTA), marking a major breakthrough in bilateral economic relations.
According to officials, the deal will eliminate or reduce tariffs on 96.6% of traded goods by value, paving the way for a massive expansion in trade. The agreement is expected to double EU exports to India by 2032, benefiting key European industries while offering Indian consumers greater access to global products at competitive prices.
Under the pact, tariffs on automobiles and auto components will be gradually reduced, while duties on European spirits and premium alcohol will be eased. The textile sector is also set to gain, with improved market access for Indian exporters in the EU.
The India-EU trade deal is being described as one of the most comprehensive agreements signed by India, covering goods, services, investment, and regulatory cooperation. Economists believe the agreement will boost job creation, attract foreign investment, and strengthen India’s position in global supply chains.
Key Highlights
Tariffs reduced or eliminated on 96.6% of traded goods
Major relief for autos, spirits, and textiles
EU exports to India expected to double by 2032
Strong boost to bilateral trade and investment
Shalu Shalu