Modi Explains Ind-EU Trade Deal: Car Prices To Go Down?

It is already known that the European Union had been consulting with the Indian authorities over a new free trade agreement in view of the recent tariffs imposed by Donald Trump in United States. The authorities have been labelling this as “mother of all deals” meaning there could be large financial benefits for both India and Europe once the trade agreement is signed. 

In this context, Indian Prime Minister Narendra Modi spoke briefly about this free trade deal while addressing the nation today. 

In this regard, PM Modi stated “Manufacturing will get a huge boost from this trade deal with the EU, and the services sector will also expand. The Free Trade Agreement will boost the confidence of every investor and businessman to invest in India.”

Coming to the much anticipated discussion about the reduction in car prices, there will be significant progress once the trade agreement is signed. 

This trade deal would bring the imported tariff on luxury cars from existing 110% to an affordable 40%. This would essentially mean that several luxury cars, including Mercedes-Benz, BMW, and others would become a lot more affordable to the Indian population.

Mercedes-Benz, BMW, Audi, Porsche, and even high-performance marque companies like Rolls-Royce, Bentley, Aston Martin, Ferrari, Maserati, Lamborghini will see reduced tariffs. The prices of these cars would go down significantly in India, which could invite more buyers.

At the same time, it would also invest heavily in Europe, particularly in the energy sector, as confirmed by PM Modi.