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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.

Latest world news

India, Canada discuss trade pact to boost bilateral commerce

India and Canada discussed advancing negotiations on a proposed Comprehensive Economic Partnership Agreement aimed at expanding trade, investment and market access between the two countries.

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India canada trade pacts

India and Canada discussed advancing negotiations on a proposed trade agreement as the two countries seek to strengthen their economic and commercial ties.

Commerce and Industry Minister Piyush Goyal met Canada’s Minister of International Trade Maninder Sidhu, who is leading a Canadian delegation to India. The discussions focused on advancing negotiations for the proposed India-Canada Comprehensive Economic Partnership Agreement (CEPA).

The proposed pact is aimed at creating greater market access and opening up new opportunities for trade and investment between the two countries.

India-Canada CEPA talks

Both sides discussed the importance of a balanced and mutually beneficial agreement that can make use of the complementary strengths of the two economies.

The discussions also focused on deepening commercial engagement and creating new opportunities for businesses in both countries.

Goyal said the two sides reaffirmed their commitment to taking the India-Canada economic partnership to a higher level, with CEPA serving as a catalyst for deeper commercial engagement.

India and Canada are working towards concluding the CEPA negotiations by the end of 2026.

India-Canada trade

The proposed CEPA is aimed at improving market access and creating opportunities across sectors while strengthening the broader economic relationship between India and Canada.

The agreement is expected to provide greater opportunities for businesses in both countries and support deeper trade and investment ties.

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Latest world news

White House put on temporary lockdown after car crashes into signpost

The White House was temporarily placed under lockdown after a car crashed into a signpost near Lafayette Square in Washington, DC. The driver was detained after a confrontation with security personnel.

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The White House was placed under a temporary lockdown on Monday after a car crashed into a signpost at Lafayette Square near the presidential residence in Washington, DC.

The incident triggered a security response in the area, with the US Secret Service directing members of the White House press corps to move indoors and remain there temporarily.

Driver detained after confrontation with security personnel

The driver was detained following a confrontation with Secret Service officers and National Guard personnel, according to reports.

Video footage showed a silver sedan on the paved area at the northern end of Lafayette Square after striking a signpost. Smoke was also seen coming from the vehicle.

Authorities had not immediately disclosed the driver’s identity or established what led to the crash.

White House security restrictions imposed

The security response prompted temporary restrictions around the White House. The incident occurred at Lafayette Square, which is directly across Pennsylvania Avenue from the presidential complex.

At around 10 am local time, Secret Service personnel instructed White House journalists to move indoors while security personnel dealt with the incident.

The White House was under the security restriction while President Donald Trump was at the premises, according to reports.

Motive behind crash remains unclear

It was not immediately known whether the crash was accidental or deliberate. Authorities had also not immediately confirmed whether anyone was injured.

The circumstances surrounding the incident, including the driver’s identity and possible motive, remained under investigation.

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Football news

Cristiano Ronaldo announces retirement from international football

Cristiano Ronaldo has announced his retirement from international football, bringing an end to his 23-year career with Portugal after 234 appearances and 146 goals.

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Cristiano Ronaldo

Cristiano Ronaldo has announced his retirement from international football, bringing his 23-year career with Portugal towards an end.

The 41-year-old Portugal captain said he would hand back the No. 7 shirt of the national team after the November international break. Ronaldo made the announcement in a video message shared on social media.

The decision marks the end of one of the most decorated international careers in men’s football. Ronaldo has made 234 appearances for Portugal and scored 146 goals, both records at international level.

Ronaldo’s Portugal career comes to an end

Ronaldo made his Portugal debut in 2003 and went on to represent the country across more than two decades.

He helped Portugal win their first major international trophy at Euro 2016. He was also part of the teams that won the UEFA Nations League in 2019 and 2025.

Ronaldo’s international career also included six World Cup appearances. His final World Cup came in 2026, when Portugal were eliminated by eventual champions Spain in the last 16.

Ronaldo reflects on 23 years with Portugal

Announcing his decision, Ronaldo said it was not an easy choice and described his time representing Portugal as a privilege and responsibility.

He thanked his family, the Portuguese people, as well as the teammates, coaches and staff who were part of his international journey.

Ronaldo also said that Portugal would always remain a part of him.

Record-breaking international career

Ronaldo leaves the Portugal setup as the men’s all-time leading international goalscorer and the player with the most international appearances.

His 146 goals came across 234 appearances for Portugal. He also became one of only two players, alongside Lionel Messi, to feature at six World Cups.

His international career included major individual records as well as team honours, making his departure one of the biggest moments in modern international football.

What happens next

Ronaldo’s announcement comes after he said he would hand back Portugal’s No. 7 shirt following the November international break.

Portugal have Nations League fixtures during the November window, but Ronaldo’s announcement means his international career is now set to conclude after that break.

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