The Digester
Week 5, Wednesday

EU and India finalise landmark free trade agreement

After nearly 20 years of talks, the deal cuts tariffs on most goods and opens Indian markets to EU firms, with a formal signing expected later this year.

  • Negotiations that began in 2007 concluded late after an accelerated push in the past six months.
  • The agreement eliminates or cuts tariffs on 96.6% of traded goods by value.
  • The EU expects its exports to India to double by 2032 and companies to save about €4bn in duties.
  • India will cut car tariffs to 10% over five years and allow up to 250,000 European vehicles at preferential rates.
  • The pact targets manufacturing and services and eases access for cars and wine from the EU and textiles, gems and pharmaceuticals from India.
  • Formal signing is scheduled later this year and the deal could enter into force early next year.