00:00Welcome back. India has agreed to sharply cut...
00:05import duties on high-end European cars under a new trade deal with the European Union.
00:10Under the agreement, tariffs on luxury vehicles will drop from 110%...
00:15to just 30%, a major shift for a market that has long been tightly protected.
00:20India will gradually lower tariffs on cars...
00:25priced above 15,000 euros.
00:27Although officials have yet to spell out a clear...
00:30timeline for how quickly those cuts will happen.
00:33The deal was finalized on Tuesday...
00:35after years of negotiations...
00:37as both sides look to reduce trade barriers and deepen...
00:40economic ties.
00:41It also comes as India and the EU seek to diversify...
00:45their trade relationships...
00:46at a time of uncertainty over U.S. trade policies.
00:50India is now the world's third-largest car market by sales...
00:53trailing only the United States...
00:55and China...
00:56but it has traditionally shielded domestic manufacturers...
00:59from foreign companies.
01:00India is now the world's third-largest competition.
01:01Luxury cars make up less than 1% of the 4.4 million.
01:05passenger vehicles sold in India last year.
01:08The move opens the door to premium car makers...
01:10such as BMW and Mercedes-Benz...
01:12which have faced some of the highest import...
01:15taxes in the world.
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