Cheaper treats from Europe: What the EU–India trade deal means for Indian consumers
Jan 27, 2026
Synopsis
A new EU-India free trade agreement will bring cheaper European goods to India. Expect lower prices on wine, spirits, beer, and olive oil. Many processed foods like chocolates and breads will also become more affordable. Import duties on cars and pharmaceuticals are set for significant reductions. This deal expands consumer choices and eases prices for Indian shoppers.
India's prime minister says it has reached a free trade deal with the EUAPIndian Prime Minister Narendra Modi, European Council President Antonio Costa and European Commission President Ursula von der Leyen
India-EU FTA: The newly concluded EU-India free trade agreement promises cheaper European consumer goods in India such as breads, chocolates, confectioneries and wine in a move likely to expand choices and ease prices for Indian consumers accustomed to high import duties on European products.
Key tariff cuts under the EU-India deal include some such benefits for the Indian consumer:
Wine: Import duties will be slashed from 150% to 75% at entry into force, with tariffs eventually falling to as low as 20% for premium wines and 30% for mid-range wines, making European wines significantly cheaper in India.
Spirits: Tariffs of up to 150% will be reduced to 40%, easing the cost of imported spirits.
Beer: Import duties will be cut from 110% to 50%, lowering prices for European beer brands.
Olive oil, margarine and other vegetable oils: Duties of up to 45% will be fully eliminated over five years, sharply reducing prices of these staple imports.
Processed foods (breads, pastries, biscuits, pasta, chocolate, pet food): High tariffs of up to 50% will be completely removed, improving affordability and availability.
Fruit juices and non-alcoholic beer: Import tariffs of up to 55% will be reduced to zero, making these products cheaper for consumers.
Kiwis and pears: Duties of 33% will fall to 10% within agreed quotas, lowering prices for imported fruits.
Agri-food products overall: Average tariffs of over 36% on European agri-food exports to India will be removed or significantly reduced, expanding consumer choice.
Pearls, precious stones and metals: Tariffs of up to 22.5% will be eliminated for 20% of products, with reduced duties for another 36%, benefiting jewellery and manufacturing sectors.
Motor vehicles: Import duties of 110% will be cut to 10% under a quota of 250,000 vehicles, potentially lowering prices for select imported models.
Pharmaceuticals: Tariffs of around 11% will be removed for almost all products, improving access to European medicines.
Sheep meat: Duties of 33% will be eliminated entirely, reducing costs of imported meat products.
Sausages and other meat preparations: High tariffs of up to 110% will be lowered to 50%, easing import prices.
Luxury cars: Tariffs on imported cars will be gradually reduced from 110% to as low as 10%, while duties on auto components will be fully eliminated over the next five to ten years.
Separately, the two sides are also negotiating a Geographical Indications agreement to safeguard traditional European farm products in India by addressing unfair competition from lookalike goods.
[The Economic Times]
