India-EU trade deal explained: Chocolates, Wines, Cars among products likely to get cheaper

India’s landmark trade deal with the European Union will slash import duties on cars, chocolates, wine and machinery, promising lower prices, wider choices and stronger trade ties.

New Delhi: Discounts are coming to a store near you as India and the European Union agreed to one of the biggest free trade agreements (FTA) with “zero-duty” on various products. Terming the pact one of the most comprehensive ever signed by India, officials said the agreement would slash import taxes on everything from automobiles to medical devices and chocolates to wine.

The trade agreement is expected to increase two-way trade, improve access to markets on either side and most importantly make many goods cheaper for Indian consumers.

Take a look at some of the things that are likely to get cheaper soon:

Chocolate, Cheese, Cookies and Wine!

From everyday foods you buy from supermarkets to a good bottle of wine, many lifestyle products you have grown used to seeing with hefty price tags on them will get cheaper because of this agreement.

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Duties on processed foods like chocolates, biscuits, pasta, bread and pastry are expected to become zero. After years of hefty tariffs on imports these products will now be much cheaper. You will also find oils such as olive oil, fruit drinks and even non-alcoholic beer cheaper at your local supermarkets.

If alcohol is your thing, products like wine, beer, and spirits that previously attracted duties of up to 150% will become cheaper immediately the deal kicks in.

Luxury Cars, Industrial Machinery and Pacemakers too

For more premium products like automobiles, tariffs will reduce from 110% to just 10% within a specified quota. This includes high-end and luxury cars. Taxes on industrial goods like machinery and electrical equipment will also become zero.

Medical devices and pharmaceuticals will also attract low duties. This should be good news for hospitals, factories and construction projects around India.

Full List: What Gets Cheaper After the India-EU Trade Deal

Product	Current Tariff (%)	Future Tariff (%)
Machinery and electrical equipment	Up to 44	0 for almost all products
Aircraft and spacecraft	Up to 11	0 for almost all products
Optical, medical and surgical equipment	Up to 27.5	0 for 90% of products
Plastics	Up to 16.5	0 for almost all products
Pearls, precious stones and metals	Up to 22.5	0 for 20% + reductions on 36%
Chemicals	Up to 22	0 for almost all products
Motor vehicles	110	10 (quota of 250,000 vehicles)
Iron and steel	Up to 22	0 for almost all products
Pharmaceuticals	11	0 for almost all products

Agricultural & Food Goods (EU → India)

Product	Current Tariff (%)	Future Tariff (%)
Wine	150	20 (premium), 30 (medium)
Spirits	Up to 150	40
Beer	110	50
Olive oil & vegetable oils	Up to 45	0
Kiwis and pears	33	10 (in-quota)
Fruit juices & non-alcoholic beer	Up to 55	0
Processed foods (biscuits, pasta, chocolate, pet food)	Up to 50	0
Sheep meat	33	0
Sausages & meat preparations	Up to 110	50

More Trade, Cheaper Goods for Consumers

Analysts expect India-EU trade to double in the next decade because of the deal. Increased competition will also raise the quality of domestic goods. India has protected sensitive industries in the deal but cutting down tariffs by this large a margin shows Delhi is opening up.

You’ll be able to buy cheaper European goods ranging from biscuits to luxury cars very soon.