India plans to reduce tariffs on cars from the EU from 110 to 40 percent

India is preparing a fundamental change in its trade policy – according to confidential sources, it plans to reduce import duties on European cars by up to 40 percent, which would mean a significant opening of its market. The original duty could reach up to 110 percent.

The reduction would apply to a limited number of vehicles from the EU with a value of over €15,000. This step is part of a planned free trade agreement between New Delhi and Brussels, which is to be officially presented on January 27.

A further reduction in tariffs is also planned, down to 10 percent. Large car manufacturers such as Volkswagen, BMW, and Mercedes-Benz could benefit from the agreement. In addition, India would gain better access to European markets for its textiles, jewelry, and electronics.

Although negotiations are not yet complete, this is the Indian Union's closest move yet towards a more open approach in the automotive sector.

(reuters, pir)