Under the pact, tariff barriers will be dramatically reduced or eliminated on the vast majority of traded goods. The EU plans to drop tariffs on more than 96 % of goods by value imported into India, saving European exporters an estimated €4 billion annually. For import duties on specific items like European cars, India will slash duties from around 110 % to 10 % over five years under a 250,000-vehicle quota, opening its large automotive market to major European manufacturers.

On the Indian side, EU member states have committed to cutting or removing tariffs on nearly all Indian exports entering their markets. Tariffs on textiles, leather, chemicals, marine products, gems and jewellery — key export categories — are set to be phased out, with many becoming tariff-free over time. This opening is expected to enhance competitiveness for labour-intensive and value-added export sectors in India.

Notably, sensitive sectors such as dairy and cereals have been excluded from tariff liberalisation to protect domestic producers in both regions. India will maintain tariffs on core agricultural products like milk and cheese, while the EU similarly safeguards certain agricultural imports. This calibrated approach attempts to balance liberalisation with protection for vulnerable producers and food systems.