India locks in EU trade deal, protects cars and food staples
India and the European Union have concluded negotiations on a Free Trade Agreement (FTA), making sure everyday cars under ₹25 lakh and key foods like rice, wheat, pulses, and dairy stay protected from tariff cuts.
Tariff changes under the deal will take effect at different times — some on entry into force and others phased over five, seven, 10 or even 14 years (with certain EV duty concessions beginning in the fifth year) — and it also brings major changes for premium cars and electric vehicles.
Why does this matter for you?
This FTA opens up a huge market—2 billion people strong—covering a quarter of the world's economy.
Premium car duties will drop from 110% to 10% (within set quotas), and EVs get duty relief too.
India kept out genetically modified foods and protected local farmers' interests, while the EU agreed to shield its own staples like sugar and beef.
Both sides are cutting tariffs on most goods, which could mean more choices (and maybe better prices) on everything from clothes to tech to food—plus a boost for jobs and small businesses back home.