Overview
- The pact eliminates or cuts duties on 96.6% of EU goods exports to India, with the European Commission estimating €4 billion in annual tariff savings and projecting EU goods exports to India could double by 2032.
- Indian auto import duties will fall from up to 110% to about 10% over ten years, with an immediate drop to 35%, an annual export quota of 250,000 European cars (160,000 internal‑combustion and 90,000 electric), a 75,000‑unit CKD quota, and full liberalisation for parts and spares over five to ten years.
- Sensitive farm products are shielded, including beef, poultry, rice, sugar and certain dairy, while key cuts include wine duties falling from 150% to 20%, spirits and beer from 110% to 40%, olive oil from 45% to zero, and many processed foods from up to 50% to zero.
- The deal extends beyond trade with a formal partnership on security and defence, including cooperation on maritime security, cyber threats, counter‑terrorism and space.
- Brussels frames the accord as a strategic diversification of markets in a period of tariff tensions, while the technical texts now undergo legal‑linguistic review and must be approved by EU institutions and India, with implementation expected within roughly the next year.