Deal signed between India and EU
A historic trade deal has been signed between India and Europe. After nearly two decades of intermittent negotiations, the agreement will allow India to gradually open its large and tightly regulated market to free trade with the EU. With this trade deal, tariffs on about 90 percent of the products coming from the EU have either been eliminated or reduced. With this deal, beer and wine will become cheaper in India also. Because the tariff imposed on them has been reduced.
India has reduced the tariff on liquor and beer coming from 27 EU countries. The tax on beer has been reduced to 50% and the tax on spirits has been reduced to 40%. Apart from this, tax on wine has been reduced to 20-30%. After this, foreign liquor in the country, especially the liquor that used to come from Europe, will become cheaper.
Tax removed from these goods
On one hand, India has reduced the tax on beer and liquor. On the other hand, the tariff on some products has been reduced to absolutely zero. It has been announced to completely abolish taxes on olive oil, margarine and vegetable oil. Along with this, it has been announced to abolish tax on fruit juice and processed food. Tax on pasta and chocolate has also been completely abolished.
Cars and medicines will be cheaper
The biggest announcement in the trade deal has been regarding tariffs on cars. India has announced to reduce the tax on luxury cars and motor vehicles coming from Europe from 110% to 10%. However, it has also imposed a limit of 2.5 lakh vehicles annually. Apart from this, it has been decided to abolish most of the taxes up to 44% on machinery. Tax of up to 22% on chemicals will mostly be abolished. Tax of up to 11% on pharmaceuticals has mostly been abolished. Apart from this, tax on aircraft and spacecraft has been removed from almost all the products.
India will get a budget of Rs 4,500 crore
Under the Free Trade Agreement, India will get support of €500 million i.e. approximately Rs 4,500 crore from the EU in the next two years to help reduce greenhouse gas emissions. EU trademarks, designs, copyrights and trade secrets will get stronger legal protection. There will be a special chapter for digital trade to make online business safe, fair and trustworthy.
EU service companies will get special facilities in India in financial and maritime services. Better market access will open new business and employment opportunities. There will be a separate special chapter for small and medium industries (SME). SME Contact Points will be created to help companies, so that business can become easier.
Also read- Mother of all deals with EU will be signed today, India has these expectations from FTA