EU and India conclude negotiations for free trade agreement
India tariffs on EU motor vehicles will decrease to 10%
The European Commission (EC) has announced the conclusion of negotiations for a free trade agreement (FTA) with India.
According to the EC release (January 26, 2026), India will gradually decrease tariffs on cars from 110% to as low as 10%, while tariffs on car parts will be fully eliminated after 5 to 10 years. Tariffs on machinery, chemicals, and pharmaceuticals will also be mostly eliminated.
The agreement removes or reduces tariffs on EU exports of agri-food products, such as wines, olive oil, and processed agricultural products.
Next steps involve legal revision, translation, and approval processes within the EU and India before the agreement can enter into force.
Read a January 2026 report prepared by the KPMG member firm India