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EU pulls tariff preferences on 87 per cent of Indian exports ahead of FTA

Published on: Jan. 22, 2026, 1:35 p.m. | Source: The Tribune

From January 1, 2026, India faces a major setback in the EU market, as 87 per cent of its exports begin paying higher import tariffs following the EU's suspension of Generalised Scheme of Preferences (GSP) benefits. These GSP concessions previously allowed Indian products to ship at less than Most Favoured Nation (MFN) tariffs to EU markets. Now, however, concessions are suspended for 87 per cent of the value of Indian goods to the EU, forcing exporters to pay full MFN tariffs.

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