EU-India Free Trade Agreement- A glimpse

India and the European Union had been in talks in terms of securing a trade deal for close to two decades. And with the constant threat of regulations and conditions on the goods that can be sold in the Union, India failed to meet the requirements. Over time, India continued to focus on other nations to secure trade deals and promote Indian goods and workforce, which proved fruitful. In recent times, the trade landscape has changed with the threat of “tariffs” being imposed globally. India, though in talks with the US to secure a favorable deal, remains to be seen what the reality is.

EU-India Free Trade Agreement

EU trade deal- Details so far…

The deal between India and the European Union is on its final leg, and the official confirmation of the terms will be made public. The deal is coming in with perks, where many of the items would likely be cheaper to own. The Union is known for multiple luxury brands and supercars now they will become cheaper as the tariffs have been slashed to 40% from 110%. This will be very beneficial for car brands such as Volkswagen, Mercedes, and Porsche to expand their portfolio of products in the Indian market. This will be brought down to 10% as per many sources as the years progress. This will allow the manufacturers to produce their cars in Indian soil, making it a lot more accessible to the Indian consumers. Because the Indian automobile market is the 3^rd largest consumer base in the world, this deal will help foster a better marketplace for new players to join in the market.

The partnership will also look forward to cutting greenhouse emissions for both nations significantly. With many more programs and technology sharing, it is more likely to gear India to a greener and more sustainable economic space. With the exports, Europe will also be able to generate more jobs on its home soil.

Many sectors will see a major benefit in the deal, which will also include pharmaceuticals, chemicals, aerospace, and food products, to name a few.

Some of the other highlights include:

·        Simplified customs procedures for quicker transit of goods from both countries.

·        Cheaper tariffs on spirits, liquor, and beer.

·        Tariffs on cooking oils (olive oil, vegetable oils), fruit juices, and processed foods will be eliminated.

·        Spacecraft and aircraft products that are heavily tariffed will be eliminated.

·        As per reports, close to 90% of the goods exported to Europe will be eliminated or reduced.

·        More transparency on trade, fewer regulatory barriers.

·        More protection for trade secrets, copyrights, and digital rights.

From the details coming in from the sources, the deal is promising for both nations. Progress in terms of economic growth and environmental protection taking the forefront in the development of both nations is a step in the right direction.  With the legal formalities pending for approvals from both nations, the final details on the terms and conditions will be understood with clarity.