Tariffs Slashed, Trade Accelerated
A European Commission fact sheet says the agreement will dramatically lower or eliminate tariffs on a wide range of goods, streamline customs procedures and introduce shared rules on digital trade and intellectual property protections. EU officials expect exports from the bloc to India to double once the agreement takes effect.
Nearly 97% of tariffs on EU goods shipped to India will be reduced or scrapped entirely, including duties on machinery, industrial equipment, aerospace products, chemicals and pharmaceuticals. On the other side, more than 99% of tariffs on Indian exports to the EU will be addressed, covering sectors such as seafood, textiles, chemicals and footwear.
Cars, Security and Manufacturing
The agreement also establishes an annual quota allowing 250,000 European-made vehicles to enter India at a sharply reduced tariff of 10%, down from 110%. Beyond trade, the deal includes commitments for closer cooperation between the EU and India on security and defense matters.
Von der Leyen said the agreement will spur joint manufacturing ventures and job creation, blending Indian scale and services with European technology, capital and innovation.
“It brings together Indian skills, services and scale with European technology, capital and innovation,” she said.
She added that the pact reduces strategic dependencies “at a time when trade is increasingly weaponized.”
