New Delhi, Jan. 27 (BNA): Ursula von der Leyen, European Commission President and HE Narendra Modi, Indian Prime Minister, announced the conclusion of a free trade agreement during a European-Indian Summit held in New Delhi.

"The EU and India make history today, deepening the partnership between the world's biggest democracies," said Von der Leyen, adding, "We have created a free trade zone of 2 billion people, with both sides set to gain economically."

Under the deal, India is to gradually reduce tariffs on imported cars from 110% to as low as 10 and tariffs on car parts are to be abolished after five to 10 years. Duties on some EU agricultural products are also to be lowered significantly and duties on olive oil are to be abolished, reported the German News Agency (DPA).

The Commission said that sensitive European agricultural sectors would be fully protected. Products such as beef, chicken meat, rice and sugar are excluded from the deal, and EU standards are to continue to apply to all Indian imports.

The deal will have to be formally adopted by EU countries as well as the European Parliament before it can enter into force.

N.B, A.S