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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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Trump reportedly rebukes Netanyahu over Lebanon strikes amid ceasefire concerns

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US President Donald Trump reportedly delivered a sharp rebuke to Israeli Prime Minister Benjamin Netanyahu during a phone call over Israel’s military actions in Lebanon, as concerns grow that renewed hostilities could jeopardise fragile diplomatic efforts in the region.

According to multiple reports, Trump expressed frustration over Israeli strikes linked to ongoing tensions with Hezbollah in Lebanon. The reported exchange came at a sensitive time, with Washington attempting to prevent further escalation while also pursuing broader diplomatic discussions involving Iran.

Reports point to unusually tense exchange

Sources cited in international reports said Trump used unusually strong language during the conversation, warning that continued military actions risked damaging efforts to stabilise the situation. One report claimed Trump told Netanyahu that his actions were hurting Israel’s international standing and complicating diplomatic initiatives.

The reported disagreement followed Israeli operations against Hezbollah-linked targets in Lebanon. While Israeli officials argued that the actions were a response to security threats and ceasefire violations, the US administration has been pushing for restraint to avoid a wider regional conflict.

Lebanon fighting threatens broader diplomatic efforts

The latest tensions come amid efforts to maintain a ceasefire framework between Israel and Hezbollah. US officials have been involved in discussions aimed at reducing hostilities and preventing attacks on major Lebanese population centres, including Beirut.

Reports indicate that Trump personally intervened to discourage further escalation and support negotiations intended to preserve regional stability. Hezbollah has reportedly signalled a willingness to consider a broader ceasefire arrangement if reciprocal commitments are made.

Differing public messages after the call

Despite reports of a heated conversation, Trump later suggested publicly that discussions had been constructive and that progress had been made toward reducing tensions. Netanyahu, however, maintained that Israel would continue to respond to security threats and would not alter its overall approach toward Hezbollah if attacks persisted.

The developments highlight growing challenges facing diplomatic efforts in the Middle East, where the conflicts involving Israel, Lebanon and Iran remain closely interconnected. Analysts say any major escalation in Lebanon could further complicate ongoing negotiations and increase instability across the region.

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India, Myanmar reaffirm commitment to stronger security, trade and connectivity ties

India and Myanmar have agreed to deepen ties in security, trade and connectivity, with leaders discussing infrastructure projects, border stability and economic cooperation during talks in New Delhi.

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India Myanmar

India and Myanmar have agreed to deepen cooperation in the areas of security, trade and connectivity following high-level discussions in New Delhi during Myanmar President Min Aung Hlaing’s official visit to India.

The discussions marked an important step in strengthening ties between the neighbouring countries, which share a 1,643-kilometre border and maintain close strategic, economic and cultural links. Both sides reiterated their commitment to accelerating key connectivity projects, expanding bilateral trade and enhancing cooperation on security-related issues.

The talks were held during President Min Aung Hlaing’s five-day visit to India, his first overseas trip since assuming office earlier this year. The visit included meetings with senior Indian leaders, including Prime Minister Narendra Modi and External Affairs Minister S. Jaishankar.

Focus on connectivity and economic cooperation

India and Myanmar agreed to push forward major connectivity initiatives aimed at improving regional integration and facilitating trade. The two countries emphasized the importance of infrastructure projects that can strengthen links between India’s Northeast and Southeast Asia while boosting economic opportunities on both sides of the border.

Officials also discussed ways to expand bilateral trade and encourage greater economic engagement. Both governments expressed support for increasing cooperation across multiple sectors, including development and infrastructure.

Security and border management remain key priorities

Security cooperation featured prominently in the discussions, with both countries acknowledging the importance of maintaining peace and stability along their shared border. Border management, defence cooperation and measures aimed at ensuring regional stability were among the major topics addressed during the visit.

India has consistently viewed Myanmar as an important partner under its Act East policy, while developments in Myanmar have direct implications for security and connectivity in India’s northeastern region.

Strategic significance of the visit

Analysts view the visit as significant for both countries amid evolving regional dynamics. For India, stronger engagement with Myanmar supports connectivity goals, border security and economic interests. For Myanmar, the visit provides an opportunity to broaden diplomatic and economic engagement with a key neighbour.

The leaders also reaffirmed their commitment to maintaining close cooperation and promoting stability, development and prosperity in the region through continued dialogue and collaboration.

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US strikes Iranian drone control and radar sites following drone shootdown

Washington launched targeted military strikes on radar and drone command centers in Iran’s Goruk and Qeshm Island following the downing of an American surveillance drone over international waters.

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Donald Trump statement

The US military announced it executed targeted “self-defense strikes” against Iranian radar and drone command facilities over the weekend, responding directly to aggressive actions by Tehran.

According to an official statement released on social media platform X by the US Central Command (CENTCOM), the targeted military operations focused on critical infrastructure located in Goruk and Qeshm Island inside Iran.

Response to MQ-1 drone downing

The American military intervention came after Iranian forces shot down a US MQ-1 drone, which Washington maintains was operating over international waters. Media reports indicate that the US deployment of fighter aircraft successfully eliminated Iranian air defenses, a ground control station, and two one-way attack drones involved in the hostile activity. CENTCOM confirmed that no American military personnel sustained injuries during the operation.

The weekend strikes mark another escalation in a series of direct confrontations between the two nations. Just last week, both sides engaged in retaliatory actions after an official from Washington disclosed that the US military hit an active Iranian drone operation operating near the strategic Strait of Hormuz. In retaliation, Tehran targeted an American military airbase.

Broader regional tensions and transit controls

The recent security friction comes amid complex developments in the region. Concurrently, Iranian state media reported that the maritime division of its forces coordinated the passage of 28 commercial vessels, including oil tankers and container ships, through the Strait of Hormuz over a 24-hour window. Iranian authorities claimed that recent instability in the Persian Gulf stems entirely from external military aggression.

The military flare-up also coincides with ongoing and highly fragile diplomatic negotiations over a ceasefire extension and discussions regarding Iran’s nuclear infrastructure, with negotiators trading warnings regarding bilateral trust and strategic rights.

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