At the launch, the EU will scrap tariffs on 90% of Indian goods, expanding to 93% within seven years. The EU’s average tariff rate on Indian goods will drop from 3.8% to 0.1%.Sensitive sectors were handled with calibrated measures. Electric vehicle tariff cuts will begin from year five, while no duty reductions apply outside quotas or on CKD kits. EU food safety rules remain unchanged.The FTA also covers services, sustainability, and digital trade. Binding rules address labour rights, environment, women’s empowerment, and climate cooperation.Digital trade provisions aim to support business while protecting privacy, security, and public policy.

Source: The Times January 27, 2026 17:56 UTC