Indo-European Free Trade Agreement: New Market Opportunities for European Products
Tariffs are at the core of the trade agreement concluded between the European Union (EU) and India at the end of January. The agreement offers European exporters a tangible opportunity to strengthen their presence in this vast market.
By Houssein Guimbard
PostOn average across all products, India currently applies tariffs of around 14% on imports from the EU, compared with less than 3% on the EU side.
The asymmetry is particularly pronounced in the agricultural sector, where Indian tariffs average close to 46%, reaching up to 150% for wine, whereas European agricultural tariffs stand at around 12%.
In manufacturing, Indian tariff protection is lower but remains significant, averaging around 10%, with notably high rates for certain products such as passenger cars (125%). By contrast, the EU is already largely open to Indian exports, with average tariffs of 2.1%, and rates close to zero for a wide range of products.
For the EU, the central challenge of this agreement is therefore clear: to open new market opportunities for its products by substantially improving access to the large Indian market.
For further insights into tariff protection in the European Union and India, see the CEPII Profiles.
The asymmetry is particularly pronounced in the agricultural sector, where Indian tariffs average close to 46%, reaching up to 150% for wine, whereas European agricultural tariffs stand at around 12%.
In manufacturing, Indian tariff protection is lower but remains significant, averaging around 10%, with notably high rates for certain products such as passenger cars (125%). By contrast, the EU is already largely open to Indian exports, with average tariffs of 2.1%, and rates close to zero for a wide range of products.
For the EU, the central challenge of this agreement is therefore clear: to open new market opportunities for its products by substantially improving access to the large Indian market.
For further insights into tariff protection in the European Union and India, see the CEPII Profiles.
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