New Delhi, [India] January 27 (ANI): European cars like Mercedes-Benz, BMW, Audi, Ferrari, Lamborghini, Rolls-Royce, Bentley etc are set to become cheaper in India following the conclusion of the India-European Union Free Trade Agreement (FTA), announced at the 16th India-EU Summit on Tuesday.

Under the pact, India has agreed to a calibrated, quota-based liberalisation of the automobile sector, which will allow European carmakers to introduce their models in India, particularly in higher price segments, with reduced tariffs. Within a quota system, tariffs on EU cars will go down to 10 per cent over a period of time.

The government said the carefully crafted auto liberalisation package balances consumer interest with domestic manufacturing priorities, while also opening opportunities for 'Make in India' and future automobile exports from India to the European Union.Indian consumers are expected to benefit from access to high-technology vehicles and increased competition in the premium automobile segment.

The reciprocal market access under the FTA will also enable India-made automobiles to enter the EU market, creating new export opportunities for Indian manufacturers.

The India-EU FTA was jointly announced by Prime Minister Narendra Modi, European Commission President Ursula von der Leyen and EU Council President Antonio Costa, while the documents marking the conclusion of the deal were exchanged between EU Trade Commissioner Maros Sefcovic and Union Commerce Minister Piyush Goyal. This is a major milestone in bilateral trade relations between the two sides.

The FTA comes after intense negotiations since the re-launch of negotiations in 2022. The announcement of the FTA on Tuesday marks the culmination of years of sustained dialogue and cooperation, between India and the EU, demonstrating the political will and shared vision to deliver a balanced, modern, and rules-based economic and trade partnership.

The agreement covers trade in goods and services, market access, mobility of professionals, and emerging areas such as digital trade and SMEs, with over 99 per cent of Indian exports set to receive preferential access to the EU.

India and EU are 4th and 2nd largest economies, comprising 25% of Global GDP and account for one third of global trade. Integration of the two large diverse and complementary economies will create unprecedented trade and investment opportunities. (ANI)