New Delhi, Sept. 12 -- The India-EU free trade agreement will allow European Union carmakers to export up to 1 lakh passenger vehicles annually to India at concessional import duties initially, with the quota gradually rising to 1.6 lakh vehicles from the 10th year, according to the draft text released on Friday.

The tariff-rate quota (TRQ) covers EU-origin internal combustion engine (ICE) and hybrid electric vehicles (HEVs), with concessions linked to the vehicle's CIF value. The concession will apply only to cars priced at Euro 15,000 (around Rs 16.6 lakh) or above, PTI reported.

For vehicles priced between Euro 15,000 and Euro 35,000, the in-quota duty will fall from 110 per cent to 35 per cent in the first year and 10 per cent by th...