Import duty on European cars might Cut down

The Indian Union Minister for heavy industries Mr. Praful Patel has thrown up the matter of cutting down the customs duty for the cars, which are under the Indian European Union Free Trade Agreement. The domestic industries of India are against the implementation of Free Trade Agreement which is in the final stage of its implementation. The Free Trade Agreement will be helpful in checking the investments and technology inflows other than this the slow down targets provided by the Government Automotive Mission Plan released by the Prime minister of India.

While the European auto companies are getting a feeling of protection of the country which is not according to the norms of current economic situation. The import duty on a big number of cars will come down to 30 percent from 60 percent if the government includes auto sector in the FTA as well. The company’s which will be benefitted from this agreement are mostly European auto manufacturers like BMW, Mercedes Benz, VW, Fiat, Skoda, Audi, etc. European Union demands for an elimination of import duty on cars with the price above $ 40,000 to which India has offered a 15 % to 30 % reduction. The Union has also requested to let the agreement and testing requirements be as per there testing standards because Indian testing standards are not so advanced and are not prevailing in their country.

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