India to cut duties on diesel engines, gearboxes from Japan

PTI/NEW DELHI: At a time when India and the EU are struggling to negotiate duty cuts on automobiles, New Delhi will drastically reduce tariffs on diesel engines and gear boxes from Japan under their free trade pact.

The Comprehensive Economic Partnership Agreement (CEPA) between India and Japan will come into force from tomorrow.

While India will reduce duty on diesel engines to 5 per cent from 12.5 per cent in the next six years, it will cut tariffs on gear boxes to 6.25 per cent from 12.5 per cent in the next eight years.