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A landmark trade deal between the European Union and India has been lauded as a major breakthrough for Europe’s biggest carmakers, although analysts have flagged competition concerns in one of the world’s fastest growing markets.
The EU and India on Tuesday signed what European Commission President Ursula von der Leyen and India Prime Minister Narendra Modi described as the “mother of all deals.”
The long-pending agreement, which comes as both sides seek to strengthen ties amid U.S. tensions, includes slashing tariffs on imports of EU-made cars to 10% from as high as 110% under a quota of 250,000 vehicles per year.
It represents the biggest opening yet of India’s previously restricted car market to European original equipment manufacturers, with German engineering association VDMA describing it as a “day of celebration for export-oriented mechanical engineering.”
