When one door closes, another opens. This is what is happening with India now. The Trump administration has imposed an extra tariff of 25% on India taking its tariff to 50%. But now with the Mother of All Deals, India has signed a great deal with the European Union. This is actually a free trade agreement where around 95% of the products of either countries will be tax free.
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What this means is that it's a opportunity for Indian exporters to export in the EU and don't only focus on US. Similarly products start to flow in the Indian Market which will eventually replace the US products because that will be little cheaper as compared to the US counterpart. And thus it's a win win situation for te both countries.
In this deal the auto companies will be the biggest beneficial. As the luxury car companies like BMW, Mercedes and others will be likely cheaper and thus will br affordable to the masses. Think about it the car which was around 50 lakhs willcome only for 30 lakhs which is quite a less amount.
For India, the biggest winner will be it's textiles, handicrafts and gems industry which will get the lifeline now since it was suffering because of the US tariff. And that's why the timing is perfect. Now the thing is India as such will not be much impacted of the tariffs of the US because now the exports will be send to the European Union.
This is called mother of all deals because this actually will remove the tariff for 95% of the products which will benefit both the regions.
