India, EU sign historic free trade deal:Tariffs on luxury cars cut from 110% to 10%, tax on premium liquor reduced from 150% to 20%; US expresses displeasure

India and the European Union (EU) have finalised a free trade agreement (FTA) on Tuesday after 18 years of negotiations. The announcement was made by the leaders of India and the EU during the 16th India-EU Summit. According to news agency PTI, the agreement is likely to come into effect in 2027. Under this deal, taxes on European cars such as BMW and Mercedes in India will be reduced from 110% to 10%. Taxes on European alcohol and wine imported into India may also be lowered. Currently, the tariff on European liquor is 150%, which will be reduced to 20–30%. India is the world’s fourth-largest economy, while the EU is the second-largest. Together, they account for about 25% of global GDP and roughly one-third of the world’s total trade. Photos from the visit of the Presidents of the EU Commission and Council to India Also Read | EU approves defence deal with India: Signing in Delhi next week Also Read | Europe expresses contention over Trump’s statement on Afghanistan war