This will be further lowered to 10% over time, they added, easing access to the Indian market for European automakers such as Volkswagen, ​Mercedes-Benz and BMW. Also Read | EU on cusp of historic trade deal with India: Ursula von der LeyenThe sources declined to be identified as the talks are confidential and ⁠could be subject to last-minute changes. Pact already dubbed ‘mother of all deals’India and the EU are expected to announce the conclusion of protracted negotiations for the free trade pact, after which the ​two sides will finalise the details and ⁠ratify what is being called "the mother of all deals. The pact could expand bilateral trade and lift Indian exports of goods such as textiles and jewellery, which have been hit by 50% U.S. tariffs since late August. New Delhi ‌currently levies tariffs of 70% and 110% on imported cars, a level often criticised by executives, including Tesla chief Elon Musk.

Source: The Hindu January 26, 2026 07:17 UTC