FX.co ★ India to Slash Car Tariffs to 40% in EU Trade Pact

India is set to reduce tariffs on car imports from the European Union, bringing them down from a peak of 110% to 40%, according to a Reuters report. The government, led by Prime Minister Narendra Modi, will start by immediately lowering the duties on certain vehicles priced over EUR 15,000. These rates are expected to gradually decrease to 10%, facilitating entry for automakers like Volkswagen, Mercedes-Benz, and BMW. This decision coincides with India and the EU's upcoming announcement regarding the conclusion of extensive free trade negotiations, described by officials as "the mother of all deals." Once finalized and ratified, the agreement is anticipated to enhance bilateral trade and increase Indian exports of goods such as textiles and jewelry, which have been subject to 50% U.S. tariffs since late August.