India–EU free trade agreement sealed, luxury cars and liquor may become cheaper

New Delhi (The Uttam Hindu): India and the European Union have signed a historic Free Trade Agreement (FTA), marking the conclusion of negotiations that lasted for 18 years. The agreement was cleared in New Delhi after a European Union delegation met Defence Minister Rajnath Singh, following which Prime Minister Narendra Modi officially announced the deal.

With the implementation of the FTA, several products imported from the European Union may become cheaper in the Indian market. At the same time, India’s exports to Europe are expected to receive a major boost.

What may become cheaper in India

Prices of luxury cars such as Mercedes, BMW, and Porsche may reduce

Tariffs on cars priced above 15,000 euros (around ₹16.3 lakh) may come down to 40 percent

Aircraft, electronic goods, chemicals, advanced medical equipment, and metal scrap may become cheaper

Liquor imported from Europe may see a price drop

Major boost for service sector

The agreement is expected to open new opportunities in Europe for Indian professionals in IT, engineering, telecom, and business services sectors.

Trade expected to cross 50 billion dollars by 2031

According to a research report by MK Global, after the India–European Union FTA comes into force, bilateral trade between the two sides could rise to 51 billion dollars (around ₹4.68 lakh crore) by 2031. This is likely to significantly increase India’s exports.