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India to Slash Auto Tariffs from EU in Trade Deal

Published January 26, 2026, 07:11
India to Slash Auto Tariffs from EU in Trade Deal

India is planning a significant reduction in tariffs on cars imported from the European Union, from 110% to 40%, as part of a broader free trade agreement. The deal is expected to be announced on Tuesday and will include a further gradual reduction of the tariff to 10% over time. This will ease access to the Indian market for European automakers such as Volkswagen, Mercedes-Benz, and BMW. The agreement is anticipated to boost bilateral trade and increase Indian exports, particularly in sectors like textiles and jewelry, which have been affected by US tariffs. India, as the world's third-largest car market, traditionally maintains high tariffs to protect its domestic industry.