EU to allow 2.5 lakh Indian cars at concessional duty under FTA; quota to reach 4 lakh in 10 years

The European Union will allow 2.5 lakh Indian passenger vehicles to enter annually at a concessional duty of 8 percent. This import duty concession will be progressively reduced to zero percent over a five-year period.

Electric and hybrid vehicles from India will also receive phased duty reductions alongside corresponding quota increases. Additionally, select Indian agricultural and processed food products will benefit from similar duty concessions under the agreement.

The free trade agreement between India and the EU is expected to be finalised, signed and implemented in the coming period.