India and Japan have signed a free trade pact which will result in scrap of tariffs on 94% of traded goods between the countries. What would this result for the automotively obsessed amongst us? Japan has asked India to cut tariffs on Japanese vehicles. The bilateral free trade agreement will last for 10 years and has been in the making from 2007. Although terms are not clear yet, the abolishment of tariffs would lead to huge drop in prices of Japanese cars and bikes. The Toyota Prius would get a Rs. 10 lakh price drop, whereas the Yamaha R1 would be available for Rs. 6 lakhs if excise duty on automobiles would be abolished.
“The deal would eliminate tariffs on 90% of Japanese exports to India, such as auto parts and electric appliances, and 97% of imports from India, including agricultural and fisheries products, until 2021,” the Japanese government said.