Under the agreement, India will gradually slash tariffs on imported cars from a peak rate of 110 per cent to as low as 10 per cent, according to details released by the European Commission. The duties on auto components will be eliminated entirely over a five-to-ten-year period
India’s high import tariffs on cars are set for a dramatic overhaul after New Delhi and the European Union concluded a landmark free trade agreement on Tuesday.
Under the agreement, India will gradually slash tariffs on imported cars from a peak rate of 110 per cent to as low as 10 per cent, according to details released by the European Commission. The duties on auto components will be eliminated entirely over a five-to-ten-year period.
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The car tariff cuts mark one of the most significant concessions India has made in any trade pact and come after years of resistance from domestic automakers who have argued that steep import duties are essential to protect local manufacturing and jobs.
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