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. Union Minister Piyush Goyal said the India-EU Free Trade Agreement is a strong and independent deal. He added that it will quickly go through legal review and be translated into 24 languages at the same time. He expressed hope that the agreement could come into force within 2026. 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. Meanwhile, The United States has expressed strong dissatisfaction over the European Union’s decision to finalise a major trade agreement with India. Know the benefits of the India-EU trade deal PM Modi says India signs FTA with 27 countries on 27 January On the India-European Free Trade Agreement, PM Modi said that on 27 January, India signed the FTA with all 27 European countries. He stated that this will boost investment, foster new innovation partnerships, and strengthen global supply chains. “This is not just a trade agreement, but a roadmap for shared prosperity,” he added. The Prime Minister said that under this agreement, India and the European Union will jointly advance the India-Middle East-Europe Economic (IMEA) Corridor. He noted that, amid current global disruptions, reforms in international institutions have become crucial. Later, PM Modi addressed the India-EU Business Forum, saying that today trade is increasingly used as a tool of pressure through technology and rare minerals, and therefore India and the EU should work together to reduce dependency. Costa says he takes pride in his Goan roots European Council President Antonio Costa described himself as an overseas Indian. He said, “I am the President of the European Council, but I am also an overseas Indian citizen. As you can imagine, this has a special emotional meaning for me.” Costa added that he is very proud of his Goan roots, where his father’s family comes from. For him, the relationship between Europe and India is not just official, but also personal. Ursula says FTA will cut tariffs by ₹43,000 crore European Commission President Ursula von der Leyen said the free trade agreement will reduce tariffs by around €4 billion (₹43,000 crore) annually and create new job opportunities for millions in India and Europe. She added that the India–EU free trade agreement sends a clear message to the world: the best response to today’s global challenges is cooperation, not isolation. Also Read | Has India found counter to Trump’s tariffs? ‘Mother of All Deals’ with the European Union signed 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 ​