By Admin 
The long-running Free Trade Agreement negotiations between India and the European Union have now been successfully completed. Under this historic agreement, the heavy tariff imposed on European cars imported into India will now be gradually reduced. This decision is being considered very important for both the Indian auto sector and car buying customers. Let us know in detail.
How much has the tariff reduced?
According to the government press statement, under this agreement the import tariff on cars will be reduced from the current 110% to 10%. Although this reduction will not happen immediately, rather this rule will be implemented gradually in phases. Along with this, a quota of 2.5 lakh i.e. 250,000 cars has been fixed annually, on which this concessional tariff will be applicable. With this, premium and global cars coming from Europe can become more affordable in India than before.
What benefit will Indian customers get?
Till now, due to heavy taxes, cars of European companies like BMW, Mercedes-Benz, Volkswagen, Skoda and Renault were very expensive in India. After the reduction in tariff, a big difference can be seen in the prices of these cars. This will increase the chances of Indian customers getting more options, better technology and premium cars at lower prices.
India-EU trade relations will get strengthened
Bilateral trade has become a strong link in the relations between India and the European Union. The total trade between India and EU in the financial year 2024–25 will exceed US $ 190 billion. During this period, India exported goods worth $75.9 billion and services worth $30 billion to the EU, while the EU exported goods worth $60.7 billion and services worth $23 billion to India. This agreement will open new avenues of growth for both the economies.
This FTA is being considered as the biggest opening ever for India’s auto industry. This will make it easier for foreign companies to launch their models in India, while due to increased competition in the domestic market, customers are expected to get better products. After the implementation of India-EU Free Trade Agreement, India’s auto sector will enter a new phase. Drastic reduction in tariffs may bring down car prices and it may now be easier than ever for Indian customers to buy premium cars.
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