On January 27, Hildegard Mueller, who serves as the President of the German Association of the Automotive Industry (VDA), made a statement. She said that the trade agreement inked between the European Union and India sends out a powerful message, indicating that concrete actions can indeed be taken.

Mueller pointed out that while not all trade barriers have been completely removed, this agreement comes at a crucial time. With global protectionism on the rise, it will significantly enhance the much - needed market access.

She expressed particular enthusiasm for the provisions in the agreement concerning automotive tariffs. According to these provisions, there will be a phased reduction of import tariffs on fully - assembled vehicles. This reduction will be based on an initial quota of 250,000 units. Moreover, within a timeframe of 5 to 10 years, tariffs on automotive components will be entirely abolished.

This trade agreement is set to have far - reaching impacts. It will not only fortify the bilateral trade relationship between the EU and India but also substantially boost the appeal of mutual investments between the two parties.