India-EU FTA: Luxury Cars to Get Cheaper, Duties to Drop from 110% to 35%

• India and the European Union have concluded negotiations for a Free Trade Agreement (FTA), expected to be signed and implemented by 2027.
• The FTA will significantly reduce import duties on premium cars (above ₹25 lakh) from the EU, dropping from 66-110% to 30-35% gradually.
• The duty reduction will be quota-based, with quotas increasing annually, and phased access for EU petrol-diesel cars, EVs, and heavy vehicles.
• Indian cars will gain duty-free entry into the EU market, offering a major export opportunity for India's auto industry.
• European luxury brands like BMW, Mercedes-Benz, and Volkswagen are set to benefit, while India's EV sector is protected with import quotas starting from the fifth year.

Why It Matters: The India-EU FTA will make luxury cars cheaper in India and open new export avenues for Indian automakers.