Kumar Bahukhandi
India and the European Union announce the deal. (Photo: File/ITG)
A free trade deal between India and the European Union has been announced. Both sides have reduced or eliminated tariffs on most products. This deal will make many things cheaper in India.
New Delhi : After 18 years, a free trade deal between India and the European Union has been finalised. The deal has been announced by both sides. Both countries have agreed to significant tariff reductions and the elimination of tariffs on some products. The European Union says that this step will lead to a significant increase in exports to the Indian market and will further strengthen economic relations between the two countries.
On the other hand, Indian exports are also expected to see a strong surge. Prime Minister Narendra Modi called it the ‘Mother of All Deals’. This deal between the two countries will reduce dependence on China and the US. According to the European Union, under this deal, duties will be eliminated or reduced on more than 90% of EU goods exported to India.
It is expected that this agreement will double India’s exports to the European Union by 2032. This deal will also create new employment opportunities for India. Millions of people will get direct and indirect employment after this deal. Many things will also become cheaper as a result of this deal.
What things will become cheaper?
After this deal between India and the European Union, many things will be available at lower prices. The prices of everything from cars to chemicals may come down. Wine, beer, and other beverages may also become cheaper. This agreement could reduce the prices of key items such as alcoholic beverages, food products, chemicals, machinery, pharmaceuticals, and aerospace products.
Major Announcements from the European Union Regarding the Deal
*EU exporters will save up to €4 billion annually in tariffs.
*Tariffs on beer have been reduced by 50%.
*Tariffs on wine will be cut by 40%.
*Tariffs on cars and commercial vehicles will be reduced from 110% to 10%, but a quota of 250,000 units per year has been set.
*Tariffs on olive oil, margarine, and vegetable oils will be eliminated.
*Tariffs on fruit juices and processed food products will be eliminated.
*Tariffs on almost all chemical products from the EU will be eliminated.
*Tariffs of up to 44% on machinery will be largely eliminated.
*Tariffs of up to 22% on chemicals will be largely eliminated.
*Tariffs of up to 11% on medicines and medical products have been largely eliminated.
*Tariffs on aircraft and spacecraft have been reduced to ‘0’.
*Tariffs on more than 90% of EU goods exported to India will either be eliminated or significantly reduced.
*The EU will provide €500 million in aid over the next two years to help India reduce greenhouse gas emissions.
*Stronger protection for EU trademarks, designs, copyrights, and trade secrets.
*New trade and employment opportunities are expected to open up.
*Small and medium-sized enterprises (SMEs) will receive a boost.
