India-EU Trade Deal: The Free Trade Agreement (FTA) between India and the European Union (EU) has increased Pakistan’s tension. Pakistan fears that due to the FTA signed with India, its exports to EU may reduce.

Anyway, Pakistan’s exporters and analysts have already warned that this deal can weaken Pakistan’s position in the second largest export market because Indian products will get tariff-free access to European markets on a large scale. Due to this, the prices of Indian products will reduce, demand will increase and Pakistan’s profits will be affected. At present, Pakistan is busy reviewing the impact of the newly signed free trade agreement between India and the European Union.

Why is Pakistan worried?

According to PTI report, in the weekly press briefing, Pakistan Foreign Ministry spokesperson Tahir Andrabi said that Islamabad is aware of this agreement and is committed to its trade relations with the EU. He said, “Relations between Pakistan and the EU have been friendly and mutually beneficial for a long time. EU’s Generalized Scheme of Preferences Plus (GSP+) has proved to be a win-win model for Pakistan.

Let us tell you that under this GSP+, about 78 percent of Pakistan’s products get duty free access in 27 countries of the European Union. Pakistan is getting the benefit of EU’s GSP+ status since January 2014. Due to this, Pakistan’s textile exports to European markets have increased significantly. Pakistan fears that the immediate duty-free access to India from the FTA may reduce the tariff gap for Pakistani exports under GSP+, especially in the textile and clothing sector.

What are the experts saying?

All Pakistan Textile Mills Association (APTMA) Chairman Kamran Arshad told Pakistani newspaper Dawn that the 27 member countries of EU buy about $ 8.8 billion or 27.2 percent of Pakistan’s total exports and about $ 7 billion or 39 percent of its textile shipments every year. Now that India has achieved duty-free access on 100 percent textile and clothing tariff lines, it may increase competition for Pakistan in European markets. Shankar Talreja, Research Head, Topline Securities, says, “With the implementation of FTA, there is a danger of Pakistan losing the benefits it is getting. This may increase costs for domestic industries in the future.

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The big trade agreement between India and the European Union, which was awaited for 18 years, has now been completed. In the 16th India-EU Summit, both the sides have announced Free Trade Agreement i.e. FTA. According to reports, this agreement may come into effect from the year 2027. The biggest benefit of this deal is going to be given to those Indian customers who dream of buying luxury cars like BMW, Mercedes and Audi. Till now, due to heavy import duty, these cars were out of reach of common people, but this deal can change the situation.

Import duty will be reduced from 110% to 10%

• Under the India-EU Trade Deal, there has been a major reduction in the import duty on cars coming to India from Europe. Currently, fully imported luxury cars are taxed at 70% to 110%, which doubles or even more than doubles their price. After the new agreement, this duty may reduce to only 10%. This simply means that the price of cars like BMW and Mercedes can be reduced by 50 to 70 percent. For example, if the import value of a car is Rs 20 lakh, then earlier its price after tax would reach Rs 45–50 lakh, but now the same car can be bought for around Rs 22–25 lakh.

Which car brands will benefit the most?

• European brands like BMW, Mercedes-Benz, Audi, Volkswagen and Porsche will get the most benefit from this deal. Cars like BMW 3 Series, Mercedes C-Class, Audi A4 and Volkswagen Tiguan can now become accessible to more people. This can completely change the Indian luxury car market.

What will be the impact on EV and auto industry?

• This duty cut on electric vehicles may be limited in the initial years, so that Indian companies like Tata and Mahindra do not suffer losses. Going forward, entry of European EV brands may also become easier. India-EU Trade Deal can come as a big relief for middle class customers. If the duty is really reduced by 10%, then buying a luxury car will no longer be just a dream.

India-EU FTA: After 18 years of long negotiations between India and the European Union (EU), the free trade deal was finally finalized on Tuesday. However, under this deal, India has not reduced tariffs on many products like dairy, rice, wheat, pulses, tea, genetically modified (GM) products and coffee. The Commerce Ministry gave this information on Wednesday. The ministry said that in the trade deal with the EU, many products like beef and poultry, fish and marine products, cheese, maize, fruits and vegetables, dry fruits, edible oils and tobacco have also been kept out of the scope of tariffs.

Why did India take this decision?

According to the ministry, these areas are directly related to the livelihood of small and marginal farmers, hence it is necessary to provide them security. An official said that till now India has kept its dairy sector out of the scope of exemption under tariff in any free trade agreement with any country and this will be protected in the future also. “We will continue to protect this sector,” the official said.

India and the European Union (EU) completed negotiations on FTA on Tuesday and it is likely to be signed and implemented this year. The Commerce Ministry said that the EU, a group of 27 European countries, has also kept some sensitive areas out of the scope of this agreement. It has kept products like meat and meat products, dairy products, honey, rice, sugar and tobacco under protection. Under the agreement, many Indian agricultural products will get duty concessions in the EU market, which is expected to boost India’s exports.

India will get preferential market access in about 87 percent duty categories of agricultural products like tea, coffee, spices and table grapes. Additionally, the EU will reduce the duty range on some marine products from the current zero to 26 percent, which is likely to increase exports of marine products. According to the ministry, the EU’s marine product import market is worth about Rs 4.67 lakh crore ($53.6 billion).

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India-EU FTA: Free Trade Agreement (FTA) has been signed between India and European Union. It is being called ‘Mother of All Deals’. But meanwhile, an important question remains whether Türkiye will be able to send its goods to India under this FTA?

Türkiye part of EU Customs Union

This question is coming because Türkiye is a part of the Customs Union with the EU since 1996. Under this, goods can move between Türkiye and the EU without any tariff or quota. The geographical position of Türkiye is such that it is situated between Europe and Asia. In such a situation, the transaction of goods between India and European countries can take place through this route, but it is not going to benefit from the FTA between India and EU. Even if it follows the EU’s Common External Tariff (CET).

Will Turkey benefit from FTA?

Indian officials have made it clear that while Indian products can enter Turkey via Europe, Turkish goods cannot enter India under the terms of the FTA, even if sent through EU ports.

An official, on condition of anonymity, said, “Our goods go to the EU and then can go to any other country with which the EU has a customs union, but Turkey will not get the benefit because it is not a part of the EU as a territory in the FTA, so Turkey cannot export to India and cannot take advantage of the concessions.”

An official said that even if shipping is done through EU ports, no Turkish goods will get the benefit of lower tariff under the FTA because its origin will ultimately be considered Turkey and it will attract full tariff in India.

Sour relationship between India and Türkiye

Last year, in view of the terrorist attacks in Pahalgam, Jammu and Kashmir, India had attacked Pakistan under ‘Operation Vermillion’. During this period, Turkey had openly supported Pakistan. Since then, relations between India and Türkiye have remained sour. Due to this, trade between the two countries has also decreased. India’s exports to Türkiye have fallen by 14.1 percent to $5.71 billion in the business year 2024-25, which was $6.65 billion in 2023-24. At the same time, imports from Türkiye to India have reduced by 20.08 percent to about 3 billion dollars.

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Foreign investors buying: After continuous selling of Indian shares, the mood of foreign investors has changed once again. Investor confidence was strengthened by the Free Trade Deal (FTA) signed between India and the European Union (EU) on Tuesday. The situation is that on Wednesday, January 28, foreign investors sold Indian shares worth only Rs 480 crore. This is the first purchase by foreign investors in the year 2026. According to exchange data, during this period, domestic institutional investors (DIIs) bought shares worth Rs 3361 crore.

India-EU free trade deal has an impact

After the ‘Mother of All Deals’ was signed between India and EU on Tuesday, DIIs bought shares worth Rs 19578 crore and sold shares worth Rs 16218 crore in Wednesday’s trading session. Whereas on the contrary, foreign investors bought shares worth Rs 21045 crore, but sold shares worth a total of Rs 20564 crore.

So far this year, foreign investors have sold Indian shares worth Rs 43288 crore, while domestic investors have bought shares worth net Rs 67182 crore during this period. The stock market also witnessed a rise on Wednesday amid continued expectations regarding the India-European Union Free Trade Agreement and strong signals from global markets. Both benchmark indices Sensex and Nifty maintained their gains. Nifty was above the level of 25,300, while Sensex rose 487 points.

FTA will increase foreign investment

Moody’s Ratings on Wednesday said the India-European Union Free Trade Agreement (FTA) will be positive for India as lower tariffs and better market access are expected to attract foreign investment, support manufacturing and increase export competitiveness, especially in labour-intensive sectors. Under this, 93 percent of Indian exports will get duty-free access in 27 countries included in the European Union. Also, import of luxury cars, wine and some selected food products from EU will become cheaper in India.

According to Moneycontrol report, Gaurav Garg of Lemon Markets Desk said on this, investor sentiment remained strong after the historic free trade agreement between India and European Union was approved. This agreement will create a free trade area for approximately two billion people, which will benefit both sides. That is, the FTA between the group of 27 European countries included in the European Union and the world’s most populous country will cover the market for 2 billion people and 25 percent of the global GDP.

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India-US Trade Deal: Very important progress has been made in the ongoing trade deal negotiations between India and America and a deal can be made between the two countries soon. According to NDTV report, despite the India-European Union (EU) Free Trade Agreement reaching the final stage at the political level, talks with the US continued.

Government sources rejected speculation that the India-EU agreement was part of a bargaining strategy with the US. Sources say that America was not mentioned even once in the limited meetings of India-EU on the last day. According to the government, the EU agreement was put forward on its own independent timeline and in its own commercial interests, and not as a response to parallel negotiations with the US.

Government has full eye on American market also

The government also clarified that a completely cautious approach has been adopted regarding America also. According to sources, the US market is at least equally important, but in many cases even more so. A source said that even during the crucial phase of India-EU talks, Indian trade negotiators were in constant touch with their American counterparts. Talks are still ongoing and India is optimistic about a positive outcome.

Impact of changes in the global trade system

Sources linked India’s trade strategy to the increasing fragmentation of the global trading system. He said that the MFN based WTO system is currently under pressure, hence countries are now giving priority to bilateral and multilateral agreements with big partners. India’s strategy is aimed at ensuring access to larger markets, stability and predictable rules for exporters and investors, and not at treating one agreement as a substitute for another.

India does not consider EU and US exports as competitors

Government sources stressed that India does not consider exports to the EU and the US as competing goals of each other. The priority of the government is to increase exports in both the markets, which will strengthen employment and investment in the country. Describing EU as the world’s largest import market, sources said that the India-EU agreement is an example of how India wants to move forward with big markets. Although the sources did not disclose about the India-US trade agreement, they said that the talks are ongoing. According to him, the possibility of a compromise in future has increased.

Trying to reassure the industry

The public signal of the government is also for the industry. According to sources, an attempt is being made to convey that the EU agreement is not a geopolitical strategy to get ahead of each other and talks with America are also in the final stages. The government emphasizes that India’s trade policy is being determined not by strategic signals but by concrete business outcomes such as market access, stable regulations and supply chain integration.

US President Donald Trump has a habit of giving his opinion on every small thing. Be it a celebrity, an old complaint or a small event, Trump immediately posts the truth on social media or attacks in the old tweet style. But Trump’s silence on the historic Free Trade Agreement (FTA) deal between India and the European Union (EU) is surprising everyone. This deal was completed on January 27, which is being called the ‘Mother of All Deals’, but even after more than 24 hours, Trump did not say a word.

But why the silence on India-EU deal?

This deal is considered to be the answer to Trump’s tariff policy. Trump had threatened the EU on the Greenland issue and imposed 50% tariff on India for purchasing Russian oil. But now, when India and EU have added a market of 2 billion people, Trump is silent. A news agency wrote, ‘Trump’s silence is notable.’ His officials said ‘India came on top’, but Trump himself did not say anything.

Trump will take some big steps later

Experts say that this silence may be intentional. Perhaps Trump will take some big steps later. But considering his habits, this is surprising. Trump feels that this deal is challenging his policies or he is feeling ‘chilled’ that the world is moving forward without him.

Trump knows that social media is his strength. He often posts on Truth Social, where he gives his opinion or attacks on small things.

• Attack on Taylor Swift: In May 2025, Trump took a jibe at pop star Taylor Swift on Truth Social and wrote that Swift’s behavior was ‘immature’ and described it as childlike. This post came without any major reason, just out of old resentment of Trump. Experts called it childish behavior, but Trump reacted immediately.
• Petty Revenge and Midnight Rants: In January 2025, Trump attacked General Mark Milley and Chef José Andrés on Truth Social at midnight. This was based on old complaints. In May 2025, his posts were so vitriolic that Harvard lawyers used them in a court case.
• Long list of insults: Trump has insulted more than 598 people, places and things on X. Like attacking Nordstrom for his daughter’s clothing line (in 2017), or more recently calling his own supporters ‘weaklings’ on the Epstein case. In July 2025, he posted on old complaints, such as threatening to snatch someone’s citizenship.

When will Trump speak on India-EU deal?

Now Trump’s silence on the India-EU deal has become a topic of discussion across the world. If he speaks in the coming days, it will have to be seen what he says. Right now, his silence is the biggest statement. However, on this deal, American Trade Officer Jamieson Greer has said that India is going to get the biggest benefit of this agreement. According to him, this deal is tilted in favor of India in many ways. Greer said, ‘I have seen few details of the deal so far. To be honest, India seems to be benefiting from this. India is getting more access to the European market.

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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India-EU Trade Deal: The Free Trade Deal between India and the European Union (EU) was approved on Tuesday. It was named Mother of all deals. This deal happened at a time when both sides were struggling with many geopolitical tensions like high tariffs imposed by America, weak supply chains and war between Russia and Ukraine. This was harming trade flow.

Under the FTA between India and EU, duty will be reduced on 99.5 percent of goods exported from India to EU, which includes seafood and footwear. In return, India will reduce or eliminate tariffs on 96.6 percent of goods imported from the EU, which includes European automakers and liquor.

Many things will become cheaper

Overall, under the India-EU trade deal, many types of products are going to become cheaper in India, which will benefit both consumers and the industry. For consumers, the agreement is expected to reduce prices of European cars, premium and mid-range wines, spirits, beer, olive oil, processed foods, fruits such as kiwi and pears, and meat products including sheep meat and sausages.

For industries, there will be a significant reduction in costs on imports of machinery, electrical equipment, medical devices, pharmaceuticals, chemicals, plastics, iron and steel, and aerospace components, which will help manufacturers, healthcare providers and the infrastructure sector reduce production costs and improve efficiency.

Challenge for liquor manufacturing companies

India has drastically reduced the tariff on European wine. Duty on wine has been reduced to 20 percent, on spirits to 40 percent (which was earlier up to 150 percent) and on beer to 50 percent. This is no less than a challenge for the liquor manufacturing companies in India, for whom competition in the market is now expected to become tougher.

“This is a negative thing for Indian brewers,” said Karan Taurani of Elara Securities. Shares of Sula Vineyards, United Breweries and Radico Khaitan fell after the announcement of reducing tariffs on European wine imports.

Competition is going to be tough for Indian automakers

Car manufacturing companies in India are also likely to suffer losses due to the free trade deal because under this agreement, the tariff on cars imported from Europe has been reduced from 110 percent to 10 percent. Under this, duty on auto components will also be abolished in 5-10 years.

It is obvious that after this deal, cars of foreign companies like Mercedes, BMW, Audi and Volkswagen will expand their presence in the Indian markets, but Indian automakers will have to face tough competition. After this news, shares of Mahindra & Mahindra and Tata Motors Passenger Vehicles fell.

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Regarding the Free Trade Agreement (FTA) between India and the European Union (EU), Shiv Sena (UBT) MP Priyanka Chaturvedi has called it an important and positive step. He said that this agreement was pending for the last 20 years and discussions on it continued between India and the European Union for two decades. The wait is over. Now its conclusion is a good sign not only for India but also for the countries of the European Union.

Priyanka Chaturvedi said in her statement that this agreement also establishes that when there are similarities on issues like democracy, global trade system and international rules-based system, both sides can achieve a lot together. According to him, this trade agreement is a sign of the same common thinking and shared values ​​which brings India and the European Union closer.

Both sides will benefit

He expressed hope that this agreement will prove beneficial for both the parties. He says that with this agreement the people of both the regions will get opportunities to prosper through trade.

Besides, it will also help in advancing the global trade system. Priyanka Chaturvedi clearly said that she welcomes every positive initiative related to this.

Congratulated the Foreign Minister

The MP also congratulated the Foreign Minister on this occasion. He said that the Foreign Minister was constantly trying to reach such a level of negotiation that this agreement could be possible. According to him, this is the result of a long and difficult diplomatic effort.

Importance of agreement in global situation

Referring to the current international situation, Priyanka Chaturvedi said that at this time the European Union is facing the biggest challenge with its trans-Atlantic ally. There is also a situation of heavy tariffs being imposed by America.

In such an environment, the India-EU Free Trade Agreement is a step which should be viewed from a positive perspective. According to him, this agreement further strengthens India’s role in the changing global trade scenario.