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India plans sharp cut in car import tariffs under proposed EU trade pact

India is planning a sharp reduction in car import tariffs as part of a proposed free trade agreement with the European Union, potentially opening up its auto market to European brands.

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India is planning a significant reduction in import tariffs on cars from the European Union as part of a proposed free trade agreement, according to sources familiar with the discussions. The move could mark the biggest opening yet of India’s tightly protected automobile market.

Under the plan, import duties on a limited number of cars priced above 15,000 euros are set to be reduced to 40% from the current levels that go as high as 110%. Over time, these duties could be lowered further to 10%, the sources said.

The decision is expected to benefit European automakers including Volkswagen, Renault and Stellantis, along with luxury manufacturers Mercedes-Benz and BMW, which have long raised concerns over high import taxes in India.

Trade pact announcement expected soon

India and the European Union are expected to announce the conclusion of negotiations for the long-pending free trade agreement as early as Tuesday. The pact has already been described by officials as a landmark deal, with final details to be worked out and ratified subsequently.

The agreement could significantly expand bilateral trade and provide relief to Indian exporters of products such as textiles and jewellery, which have been impacted by steep tariffs in recent months.

Limited quota, phased reduction

Sources indicated that India has proposed an immediate tariff cut for around 200,000 combustion-engine cars annually. While the quota could still see last-minute changes, it represents the most aggressive step yet by New Delhi to open up its auto sector.

Battery electric vehicles will not be included in the duty reductions for the first five years. This exemption is aimed at safeguarding investments made by domestic manufacturers such as Tata Motors and Mahindra & Mahindra in the developing EV segment. After the five-year period, EVs are expected to follow a similar tariff-cut path.

European brands see growth opportunity

India is currently the world’s third-largest car market after the United States and China, with annual sales of about 4.4 million units. However, European carmakers hold less than a 4% share of the market, which is dominated by Japanese and Indian manufacturers.

Lower import taxes could allow global brands to introduce a wider range of models at more competitive prices and assess consumer demand before committing to additional local manufacturing.

With the Indian car market projected to grow to 6 million units annually by 2030, several European automakers are already planning new investments, seeing India as a key growth destination beyond their traditional markets.

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Keir Starmer steps down as UK PM amid mounting pressure from Labour Party

UK Prime Minister Keir Starmer has announced he will step down after growing pressure from within the Labour Party, remaining in office until a new leader is chosen.

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British Prime Minister Sir Keir Starmer announced on Monday that he will step down as leader of the governing Labour Party and leave office within weeks, ending a turbulent tenure that lasted less than two years.

Starmer said he would remain as caretaker prime minister until the Labour Party elects a new leader, with the transition expected to be completed before Parliament returns in September. The announcement came after increasing pressure from within his party amid falling popularity and growing concerns over Labour’s political fortunes.

Pressure within Labour intensifies

The resignation follows days of speculation over Starmer’s future after former Greater Manchester mayor Andy Burnham emerged as a strong challenger within the party. Burnham’s recent victory in a special parliamentary election intensified calls for a leadership change and added to the pressure on Starmer to step aside.

Starmer led Labour to a landslide victory in the 2024 general election, bringing the party back to power after 14 years in opposition. However, his government’s popularity declined sharply over the past year as Labour struggled in opinion polls and local elections.

Emotional announcement outside Downing Street

Speaking outside 10 Downing Street, an emotional Starmer said every major decision he had taken had been guided by what he believed was best for the country. He also said he now wanted to spend more time with his family while ensuring a smooth transfer of power.

His departure makes him the sixth British prime minister in the past decade to leave office before completing a full term, highlighting continued political instability in the United Kingdom.

The Labour Party is expected to begin the process of choosing its next leader in the coming weeks, with Andy Burnham widely seen as a leading contender.

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Qatar gas hub explosion leaves 54 injured, 18 missing at Ras Laffan facility

An explosion at Qatar’s Barzan gas facility in Ras Laffan Industrial City injured 54 people and left 18 missing, with rescue teams continuing search operations.

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At least 54 people were injured and 18 others remained missing after an explosion and fire struck a gas facility in Qatar’s Ras Laffan Industrial City, one of the world’s most important natural gas hubs.

The incident occurred on Sunday evening at the Barzan gas supply facility during the start-up of operations, according to state-owned energy company QatarEnergy. Emergency response teams were immediately deployed to the site, and authorities later confirmed that the fire had been brought under control.

Rescue teams continue search operation

Qatar’s Interior Ministry said 54 people had been injured in the blast, while specialised search and rescue teams, working alongside Civil Defence personnel, were continuing efforts to locate 18 individuals reported missing. Authorities described the incident as a “technical accident” and said there was no gas leak posing a threat to public safety.

Ras Laffan Industrial City, located north of Doha, serves as Qatar’s main liquefied natural gas (LNG) processing centre and is a crucial part of the country’s energy infrastructure. The Barzan facility primarily supplies gas to Qatar’s domestic market.

Cause under investigation

QatarEnergy has not yet disclosed the extent of any damage to the facility. The cause of the explosion remains under investigation.

Witnesses reported hearing a loud explosion, while flames and thick smoke were seen rising from the industrial complex. Officials have not indicated whether the incident will affect broader energy operations at Ras Laffan.

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Iran announces closure of Strait of Hormuz again amid tensions over Israeli strikes in Lebanon

Iran has announced a renewed closure of the Strait of Hormuz, blaming Israeli military actions in Lebanon and raising fresh concerns over global energy supplies.

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Strait of Hormuz

Iran has announced the closure of the Strait of Hormuz, one of the world’s most strategically important maritime routes, citing Israeli attacks in Lebanon as the reason behind the move. The development comes just days after the waterway had reportedly been reopened following a period of heightened regional tensions.

According to reports, the announcement was made by Iran’s Khatam al-Anbiya Central Headquarters, the country’s top joint military command. Iranian authorities alleged that ongoing Israeli military actions in Lebanon and what they described as insufficient efforts by the United States to restrain those attacks had violated the terms of a recently established ceasefire arrangement.

The Strait of Hormuz is a critical global energy corridor connecting the Persian Gulf with the Arabian Sea. A significant share of the world’s oil and liquefied natural gas shipments passes through the narrow waterway, making any disruption a matter of international concern.

Iranian officials reportedly described the closure as an initial response and warned that additional measures could follow if regional hostilities continue. The announcement has raised concerns about potential disruptions to global energy markets and maritime trade.

However, there were conflicting assessments regarding the immediate impact of the decision. A senior US official reportedly said there was no visible indication of Iranian military activity that would suggest an imminent enforcement of the closure, while diplomatic efforts between Washington and Tehran were expected to continue in Switzerland.

The latest development marks another escalation in regional tensions and places renewed focus on the security of one of the world’s most important shipping routes.

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