From French wines to BMW: Full list of European goods getting ‘cheaper’ in India

India and the European Union on Tuesday finally shook hands on a free trade agreement that had been stuck in negotiations for nearly two decades. The FTA, being called ‘mother of all deals’, marks a major moment for India’s trade strategy at a time when the global economic order is in flux.

The agreement is wide-ranging. It cuts tariffs on almost 97% of European exports to India, a move that will gradually make several imported products more affordable for Indian consumers. One of the biggest shifts is in automobiles. India is opening up its long protected domestic car industry and has agreed to bring tariffs on European cars down to as low as 10%. This could eventually open the Indian market to brands that were earlier priced out.

The chief executives of Volkswagen, BMW and Mercedes welcomed the trade agreement and described it as a major opportunity for Germany’s export-driven economy.

Calling the deal “extremely important” for Germany, BMW CEO Oliver Zipse told Reuters that the agreement underscored the country’s commitment to remaining a strong export nation. “We are very pleased that things are now moving quickly, that we are expanding multilateral relations ​rather than cutting them ‌off,” Zipse said.

For New Delhi, the timing matters; with the United States increasingly unpredictable on trade and China flooding global markets with low-cost goods. The India-EU deal offers India a chance to diversify its economic partnerships and secure stable access to the world’s largest trading bloc.

What gets cheaper for Indian households?

For Indian households, the impact is likely to be felt in everyday purchases. The deal lowers steep duties on European agri-food and consumer goods such as wines, olive oil, breads, chocolates, confectionery and processed food. These products have traditionally carried a heavy price tag in India because of high import taxes.

Full list of EU goods that will see a tariff cut