economy
January 27, 2026
This is what’s in the India-EU trade deal
India and EU have concluded a two decade long trade negotiations

TL;DR
- India and the EU have finalized a trade deal to remove or reduce tariffs on over 90% of traded goods.
- India will lower tariffs on European automobile and agricultural products.
- The EU will reduce tariffs on Indian textiles, leather, marine products, and gems and jewelry.
- The deal is expected to come into force in 2026.
- European Commission President Ursula von der Leyen called it a 'historic' deal creating a 'free trade zone of 2 billion people'.
- India's tariffs on European cars will gradually reduce from 110% to 10%, and duties on car parts will be abolished after five to ten years.
- Tariffs on machinery, chemicals, and pharmaceuticals from Europe will also be reduced.
- Indian exports like textiles and apparel will face zero duty in the EU.
- The deal is expected to create six to seven million jobs in the textile sector.
- A framework will be established for the temporary entry and stay of professionals.
- Shares of Indian carmakers and alcoholic beverage companies fell following the news.
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