India-EU Trade Deal Finalized: Major Tariff Cuts, Key Sectors Excluded

• India and the EU have finalized a long-stalled trade deal, announced by Prime Minister Narendra Modi, redefining trade relations with the 27-nation bloc.
• India will eliminate or significantly reduce tariffs on over 90% of EU goods, potentially saving European companies 4 billion euros annually.
• Significant tariff cuts are expected in machinery (up to 44%), chemicals (22%), and pharmaceuticals (11%), with almost all chemical product tariffs removed.
• Tariffs on EU alcoholic beverages will be reduced (wine to 40%, beer to 50%), and duties on olive oil, edible oils, fruit juices, and processed foods will be eliminated.
• Medical devices (optical, medical, surgical instruments) will see 90% tariff elimination, and car tariffs will gradually reduce to 10% for up to 2.5 lakh vehicles annually, excluding EVs for 5 years.

Why It Matters: The India-EU trade deal promises extensive tariff cuts across sectors, boosting trade while protecting sensitive domestic industries.