India and the European Union have moved closer to finalising a landmark free trade agreement. The proposal includes a sharp reduction in import duties on luxury cars. India plans to cut tariffs from 110% to 40% on vehicles priced above €15,000. This step will open the market to European brands like Volkswagen, Mercedes-Benz, and BMW.
India-EU Deal Nears Final Stage
European Commission President Ursula von der Leyen attended India’s Republic Day celebrations in New Delhi as the chief guest. She called the agreement the “mother of all deals.” She highlighted that the partnership covers nearly 25% of global GDP. Officials from both sides confirmed that talks have entered the final phase.
Major Developments in the Auto Sector
India’s automobile sector is seeing rapid change. Toyota launched its first electric vehicle in the country, the Urban Cruiser Ebella. The launch marks Toyota’s formal entry into India’s EV space. Meanwhile, Yamaha recalled nearly three lakh scooters due to technical issues, raising safety concerns.
Aviation and Energy Projects Gain Momentum
The aviation sector also recorded progress. The Adani Group plans to partner with Embraer to set up a commercial aircraft assembly line in India. This project supports the Make in India initiative. At the same time, NALCO announced plans to install 200 to 300 MW of renewable energy. The company aims to reduce carbon emissions in aluminium production.
Shifting Economic and Financial Trends
India’s imports of Russian crude oil fell to around 1.1 million barrels per day. Market surveys also predict lower demand for luxury housing during the 2026–27 financial year. Prices may face pressure if the trend continues. In the banking sector, lenders have started offering pre-sanctioned loans through UPI apps, improving access to instant credit.
Government Recognises Industry Leadership
The government recently honoured Uday Kotak with the Padma Bhushan. The award recognises his contribution to India’s financial and banking sector.
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