‘Mother of all deals’ amid global trade turmoil

Conclusion of the deal between India and 27-nation European Union will slash tariffs on most goods and reduce reliance on the US amid growing global trade tensions

- SHINE JACOB

Indian auto component majors and European car makers welcomed the India-European trade deal, citing that the move will strengthen India’s integration with global automotive value chains, while simultaneously stimulating demand in the imported luxury vehicle segment, making it cheaper in the Indian market.

Under the deal, India has agreed to a quota-based reduction in import duties on European automobiles, with tariffs set to fall to as low as 10 percent over five years. This may make premium European brands such as Mercedes-Benz, BMW, Audi, Ferrari, Porsche, Lamborghini, Rolls-Royce, and Bentley cheaper in the long run.