Prime Minister Narendra Modi flanked by European Council President Antonio Costa (left) and European Commission President Ursula von der Leyen during their meeting at Hyderabad House in New Delhi.
Credit: PTI Photo
India and the European Union on Tuesday (January 27) announced what they said the 'mother of all deals' by sealing a free trade agreement.
Prime Minister Narendra Modi and the top EU leadership unveiled a grand agenda to leverage trade and defence to shore up ties amid the factitious world order.
EU chiefs and PM Modi hope the pact will help shield against challenges from the world's two leading economies -- the United States and China.
Once signed, and ratified by the European Parliament, a process that could take at least a year, the pact could expand bilateral trade.
Here is a quick look at what is gonna become cheaper and what is going to burn your wallet once the deal is through.
Tariffs on automobiles
In a move which could possibly redefine India's premium car market, tariffs on cars will be gradually lowered from a top rate of 110 per cent to as low as 10 per cent -- with a quota of 250,000 vehicles.
Food/beverages to cost less?
Food and beverages get a major boost. Duties on wines progressively go down from 150 per cent to as low as 20 percent. Spirits will go down by 40 per cent and beer to 50 percent.
Processed foods
Currently at 50 per cent, tariffs on processed foods -- including pasta and chocolate will be eliminated.
Boost for medical sector
Optical, medical and surgical equipment will see tariffs removed for 90 per cent of products which could lower costs for hospitals and diagnostics in India. Medical equipment is another big gainer with tariffs headed to zero across nearly all items.
Oil to cost less
Tariffs on olive oil, margarine and vegetable oils from the European Union will be either cut or eliminated.
Sensitive sectors left out
Sensitive agricultural sectors, such as beef, rice and sugar whose inclusion in an earlier deal struck with South American bloc Mercosur sparked farmers' anger in Europe have been left out of the agreement.
(with inputs from agencies)