In an ambitious relocate, India is set to reduce tariffs on cars imported from the European Union, dropping rates from up to 110% to 40%, according to insiders. The step comes as the two sides close in on a free trade deal expected to finalize soon, marking a significant opening of India’s automotive market.
Prime Minister Modi’s administration is poised to implement an immediate tax reduction for a select number of cars costing over 15,000 euros, progressing to a 10% tariff over time. While confidentiality surrounds the talks, indusattempt experts anticipate better access for European car firms like Volkswagen and BMW into a fiercely protected market.
Dubbed ‘the mother of all deals’, the pact is anticipated to bolster bilateral trade and extconclude India’s exports beyond textiles and jewellery. Despite a current low market share, European autobuildrs could see renewed growth as import tariffs decrease, offering opportunities to expand their reach in India’s burgeoning auto indusattempt.
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