Overview
- The agreement was signed in New Delhi on January 27 and is reported to remove roughly 96% of import duties on European goods entering India.
- India will phase down steep car import tariffs from previously as high as 125% toward about 40%, opening a major market for European automakers.
- Sectors considered sensitive in India, notably dairy and broader agriculture, remain excluded or protected in the deal.
- Analysts project EU exports to India could roughly double from about €120 billion to €240 billion, subject to final texts, phased timetables, and approval processes.
- Officials and experts frame the pact as part of a strategic shift, with US tariffs under President Trump and concerns about China driving both sides to diversify economic ties.