India and the European Union on Tuesday announced the conclusion of negotiations for the Free Trade Agreement. The deal is likely to be implemented this year itself.
President of the European Commission Ursula von der Leyen said, "It means more than trade. It means more and better jobs, more and closer friendship, more connections, more opportunities for our businesses, and of course, our people, and fewer dependencies."
The 27-nation bloc will get duty concessions on 93 per cent of their goods in the Indian market. Here is a break down of major products that will get cheaper after the deal comes into effect.
Cars
Under the FTA, the import duties on European cars will see phased reduction within a quota system. The quota cover the first 250,000 cars imported annually from the European Union. Fully imported models in the higher price segments will see the sharpest drop in tariffs. From the current 110 per cent, the tariffs are expected to come down to 40 per cent the coming year and gradually drop to 10 per cent in a phased manner.
Among the car models that will see reduced tariffs include Mercedes-AMG G 63, Mercedes-AMG CLE 53, BMW M4 Coupe, BMW M8 Coupe, BMW i4, Audi RS Q8, Porsche 911, Porsche Cayenne, Porsche Macan, Porsche Taycan, Porsche Panamera, Maserati Grecale, Lamborghini Urus SE, Lamborghini Revuelto, Lamborghini Temerario, Land Rover Defender, Rolls-Royce Ghost and Bentley Bentayga.
Wine, spirits and beer
Indians can now enjoy European wines at a lower price. Luxury wines will see 20 to 150 per cent price drop, according to reports. Wines under 2.5 euros will not get concessions. Tariffs on beer will come down from current 110 per cent to 50 per cent after the deal. Spirits will also see the tariffs dropping from 150 per cent to 40 per cent.
Fruit juices and non-alcoholic beer
The tariffs on fruit juices and non-alcoholic beer will come down from 55 per cent to nil.
Processed food
Processed food items such as breads, pastries, biscuits, pasta, chocolate and pet food will also attract zero tariff compared to the current 50 per cent.
Meat, sausages
Sheep meat, which was levied 33 per cent tariff, will no longer attract duties. Sausages and other meat preparations will see tariff dropping from 110 per cent to 50 per cent.
Olive oil and other vegetable oils
Up to 45 per cent tariff was levied on olive oil, margarine and other vegetable oils. This will drop to zero, thanks to the FTA.
Medicine
Imported medicines will see a drop in prices after the current 11 per cent tariffs are eliminated.
Medical, optical and surgical equipment
While most medical, optical and surgical equipment were levied 27.5 per cent tariffs so far, the agreement will reduced the tariffs to nil for 90 per cent of the products.
Chemicals
There will be zero tariffs on chemicals going forward compared to the current 22 per cent.
Plastics
Up to 16.5 per cent tariffs are imposed on plastics currently. Most of this will come down to zero.
Iron and steel
Up to 22 per cent of tariffs on iron and steel will be removed when the deal comes into effect.
