India-EU FTA: Passenger Aircraft Imports Duty-Free, Airfares May Drop

• India will remove duties on passenger aircraft imports from the EU under a new Free Trade Agreement (FTA), potentially lowering operating costs for Indian airlines.
• The duty removal could lead to reduced airfares for consumers, as India lacks domestic aircraft manufacturing and relies on imports.
• The FTA excludes sensitive sectors like wheat, rice, corn, GM products, pulses, and dairy, while some agricultural imports are subject to Tariff Rate Quotas (TRQs).
• A five-year review mechanism is included for sectors facing duty relaxation, allowing them to adapt to increased competition.
• The agreement offers mobility terms for intra-corporate transferees, trainees, spouses, and dependents, and has been welcomed by German industry leaders for new business opportunities.

Why It Matters: India's FTA with the EU will eliminate duties on aircraft imports, potentially lowering airfares and boosting trade.