A complete Free Trade Agreement (FTA) between India and the UK is all set to be signed between, India and UK. According to the agreement, it will cut off major tariff on Whisky, Garments, and Slash duties on British cars. Nearly 150% to 75%, eventually 40% over a decade.
After 3 years of negotiation, India and UK are all ready to formalise a long-awaited Free Trade Agreement. It is followed by PM Modi’s state visit to London.
The agreement includes broad tariff reductions for gin and whisky from Scotland.
Over the following ten years, Indian duties will be reduced from 150% to 75% and then to 40%.
Cars: Under a phased quota system, duties on UK vehicles in India will decrease from over 100% to 10%.
On 99 percent of goods entering the UK, Indian exports—textiles, clothing, footwear, jewels, machinery, and auto parts—will be duty-free.
UK goods: 90% of tariff lines, including those for food, medical devices, and cosmetics, have duty reductions.
Moreover, it has broader benefits than trade. Every year, non-sensitive Indian procurement tenders worth up to ₹200 crore. Consequently, sometimes about £20 million, are made available to UK companies.
By 2030, the agreement is anticipated to double bilateral trade to $120 billion, strengthening both economies and generating jobs related to exports.
We can consider it as a win for the section of consumers and exporters. The Indian SME’s =, manufacturers could get benefit from duty-free access. However, this is going to be UK’s most significant trade deal since Brexit. Additionally, it marks India’s first major FTA with a developed economy outside Asia.