India And The EU Are Preparing A Sweeping Trade Agreement

• 26.01.2026, 15:26

The Free Trade Pact has been called the "mother of all agreements."

India and the European Union are nearing a trade agreement under which New Delhi will cut import duties on European cars by up to 40 percent.

This was reported by Reuters.

Agency sources familiar with the talks said the two sides are set to sign a free trade pact, which has been dubbed "the mother of all agreements."

According to the document, the Indian government plans to immediately reduce tax on a limited number of European cars with an import price of more than 15,000 euros. From the current 70-110% it will fall to 40%, after which the duty will be gradually reduced to 10%.

Sources said that the reduction of duties will not affect electric cars for the first five years, after which they will be subject to similar rates. This decision is due to protect the investments of local manufacturers.

Reuters notes that India and the European Union could announce the conclusion of negotiations on a trade agreement as early as Tuesday, January 27. After that, the parties should finalize the details and ratify the document.