India, Jan. 27 -- European wines and other agri-food products will enter the Indian market at significantly lower prices following the Free Trade Agreement (FTA) signed between India and the European Union.

According to a statement from the EU, the agreement removes or reduces tariffs that have often been prohibitive, averaging over 36% on EU agri-food exports. Indian tariffs on wines will be cut from 150% to 75% at the entry into force, eventually reaching levels as low as 20%.

Tariffs on olive oil will fall from 45% to zero over five years, while processed agricultural products, including bread and confectionery, will see reductions of up to 50%.

The deal was announced in the presence of Prime Minister Narendra Modi and European Comm...