India-EU Free Trade Deal: The free trade deal between India and Europe has been approved. The free trade deal between India and the European Union (EU), which was stuck for 18 years, was completed today. After the India-EU trade deal, the way has been cleared for abolition of tariffs on 97 percent of goods. This will save duty of about $4.75 billion every year. This free trade deal is being called the mother of all deals. After this deal, the tax on European premium cars like BMW, Mercedes in India will be reduced from 110% to 10%.
PM Narendra Modi held a bilateral meeting with EU Commission President Ursula von der Leyen and European Council President Antonio Costa at Hyderabad House. The deal between India and the European Union (EU) was sealed in the meeting.
Announcing the mega trade deal between India and Europe, PM Modi said that today’s moment is a historic opportunity. A new chapter of two democratic powers is starting from today. Ursula von der Leyen has become an inspiration to the world. Relations between India and EU have strengthened in the last few years. Our partnership is reaching new heights. There is a trade of 180 billion euros between India and EU. India has signed the largest FTA in history. The Prime Minister said that we have established new dimensions of cooperation. This agreement is a new blueprint for shared prosperity. The partnership between India and EU will strengthen stability in the international system. In this context, many global issues including Ukraine, Western Asia, Indo-Pacific were discussed in detail. Reform of global institutions is necessary to face today’s challenges.
Ursula said- History making step
UN Council President Ursula von der Leyen has called this deal a ‘history-making’ step. This deal will connect the market of 2 billion people between India and EU, which will lead to a huge increase in trade and investment on both sides. He said, ‘This agreement has been possible after almost two decades of negotiations and will bring new changes in global trade.
100 percent tariff on cars abolished
Let us tell you that with this deal, about 97 percent tariffs on European exports will be reduced or completely eliminated, which will save duty of about $ 4.75 billion every year. Tariff on cars will be gradually reduced from 110 percent to 10 percent. Duty on wine will be reduced from 150 percent to 20 percent gradually. There is currently a 50 percent tariff on processed foods like pasta and chocolate, which will be completely eliminated.
Big cut in tariffs on EU products
- Under the India-EU deal, tariffs on EU chemicals will be eliminated for almost all products.
- Tariffs on 90% of EU products on optical, medical and surgical devices will be eliminated.
- Tariffs on EU beer will be reduced to 50%.
- Tariffs on EU spirits will be reduced to 40%.
- Tariffs on EU wines will be reduced by 20–30%.
These EU items will be cheaper in India
Big relief in tariff
- Eliminate or reduce taxes on 90–96% of EU goods
- Huge reduction in import costs
Machinery and Industrial Goods
- Tax on machinery up to 44%
- Up to 22% on chemicals
- Tax up to 11% on medicines/pharma
- Now big relief on these
Liquor, Beer and Wine
- EU wine tax reduced to 20–30%
- EU spirits tax 40%
- EU beer tax 50%
food items
olive oil
margarine
- vegetable oil
- -Tariff on these is completely abolished
Cars
- Tax gradually reduced to 10%
- Import limit of 2.5 lakh cars annually (Quota)
Medical and surgical equipment
- Tax abolished on 90% medical products
- Treatment and testing machines will be cheaper
Aircraft and space sector
Taxes on almost all EU aircraft and space products abolished
service sector
- Easy entry for EU financial companies in India
- Maritime, banking, shipping services will be easy and cheap
net profit
- EU claims: 4 billion euros of duty will be saved every year
- India-EU trade expected to double by 2032
additional benefits
- EU will give 500 million euros in the next 2 years
- Helping India reduce greenhouse gases
- Promotion of green technology and clean energy
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