India is to reduce tariffs on cars to 40% in a trade deal with EU, according to sources cited by Reuters

India is to reduce tariffs on cars to 40% in a trade deal with EU, according to sources cited by Reuters.

India's reduction of tariffs on cars to 40% in a trade deal with the EU signals a warming of trade relations, which could boost economic ties and improve market access for EU automakers. This move may also influence currency dynamics, particularly the EUR and JPY against the USD, as it underlines a shift in trade policy that might impact broader market sentiments and risk appetite. Investors should watch for potential ripple effects on global supply chains and competition in the automotive sector.