India-EU FTA: Passenger Aircraft Imports Duty-Free, Airfares May Drop
Economy
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CNBC TV18•28-01-2026, 22:37
India-EU FTA: Passenger Aircraft Imports Duty-Free, Airfares May Drop
- •India will remove duties on passenger aircraft imports from the EU under a new Free Trade Agreement (FTA), potentially lowering operating costs for Indian airlines.
- •The duty removal could lead to reduced airfares for consumers, as India lacks domestic aircraft manufacturing and relies on imports.
- •The FTA excludes sensitive sectors like wheat, rice, corn, GM products, pulses, and dairy, while some agricultural imports are subject to Tariff Rate Quotas (TRQs).
- •A five-year review mechanism is included for sectors facing duty relaxation, allowing them to adapt to increased competition.
- •The agreement offers mobility terms for intra-corporate transferees, trainees, spouses, and dependents, and has been welcomed by German industry leaders for new business opportunities.
Why It Matters: India's FTA with the EU will eliminate duties on aircraft imports, potentially lowering airfares and boosting trade.
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