India to Slash Car Tariffs to 40% in EU Trade Deal: What This Means for Automotive Investors and Businesses
India is set to significantly reduce tariffs on cars imported from the European Union, cutting them from as high as 110% to 40%, according to sources familiar with the matter. This move represents the largest market opening by India to date as the two sides approach the finalization of a free trade agreement, which could be announced as early as Tuesday.
The government led by Prime Minister Narendra Modi has agreed to an immediate tariff reduction on a select range of vehicles from the 27-member EU bloc. This applies specifically to cars with an import price exceeding 15,000 euros (approximately $17,739), sources involved in the negotiations told Reuters.
Special Analysis by Omanet | Navigate Oman’s Market
India’s planned tariff cuts on European car imports signal a major shift towards greater market openness, which could lower costs and increase competition in the automotive sector across the region. For businesses in Oman, this presents an opportunity to explore enhanced trade links and collaboration with both Indian and European markets. Smart investors should consider diversifying into sectors benefiting from improved India-EU ties, while entrepreneurs might capitalize on emerging supply chain integrations.
