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India-EU free trade pact set to lower prices of luxury cars, wines and medicines

The India-EU free trade pact is set to cut import duties on luxury cars, wines and medicines, while opening European markets for Indian exports.

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India European Deal

After nearly two decades of negotiations, India and the European Union have sealed a Free Trade Agreement that is expected to significantly reduce prices of several European products in India while expanding export opportunities for Indian manufacturers.

Described by European Commission President Ursula von der Leyen as the “mother of all trade deals”, the pact aims to deepen economic cooperation by easing tariffs and improving market access on both sides.

Luxury cars likely to become more affordable

One of the most noticeable impacts of the agreement will be in the premium automobile segment. Imported European cars such as Mercedes, BMW and Audi currently face import duties exceeding 100 per cent in India.

Under the new agreement, vehicles priced above 15,000 euros (around Rs 16 lakh) will see duties reduced to 40 per cent initially, with a further cut to 10 per cent planned over time. This is expected to bring down prices by several lakh rupees.

The concessions will operate under a quota system to safeguard India’s domestic automobile industry. Officials clarified that smaller, mass-market cars — which dominate India’s auto sector — will not be directly exported by European manufacturers, though local manufacturing remains an option.

Imported wines and spirits to get cheaper gradually

European wines from countries such as France, Italy and Spain are also set to become more affordable. India currently levies an import duty of 150 per cent on wines. Under the pact, this will be reduced to 20 per cent, though the change will be phased in over five to ten years to limit disruption to domestic producers.

The agreement is expected to reduce prices of premium spirits such as cognac, high-end gins and vodkas. However, wines priced below 2.5 euros will not receive duty concessions, a move aimed at protecting Indian manufacturers. Indian wines, meanwhile, will gain improved access to European markets.

Cheaper medicines and medical equipment

The trade deal is expected to benefit India’s healthcare sector by lowering the cost of imported medicines, particularly for cancer and other critical illnesses. Advanced medical equipment sourced from Europe is also likely to become cheaper.

At the same time, pharmaceuticals manufactured in India will gain access to all 27 EU member countries, strengthening India’s position as a global supplier of affordable medicines.

Electronics, steel and chemicals to benefit

The agreement removes tariffs on aircraft spare parts, mobile phone components and other high-tech electronic items imported from Europe. This could reduce manufacturing costs for electronic devices in India, potentially benefiting consumers.

Additionally, proposals for zero tariffs on iron, steel and chemical products may lower raw material costs for industries such as construction, with possible downstream benefits for homebuyers and infrastructure projects.

Overall, the India-EU Free Trade Agreement is being seen as a major boost for Indian exports, particularly in sectors such as garments, leather and jewellery, while offering Indian consumers access to more competitively priced European goods.

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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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