Cheaper scotch, luxury cars and social security relief: Know major changes as India-UK FTA comes into force
PTC News Desk: The India-UK comprehensive Free Trade Agreement came into force on Wednesday, facilitating one of the world's largest consumer markets to Indian exporters while making several premium British products cheaper for Indian buyers.
The agreement is also expected to strengthen investment ties, create jobs and provide a fresh push to India's manufacturing sectors, according to trade experts.
The India-UK Free Trade Agreement is expected to benefit both Indian businesses and consumers. While shoppers may eventually see lower prices on some imported British products, the biggest advantage is likely to go to Indian exporters.
Biggest benefit for Indian exporters
Under the agreement, nearly 99% of Indian exports to the UK will get zero-duty access. This means most Indian goods can enter the UK without paying import duty, making them cheaper and more competitive in the British market.
The sectors expected to benefit the most include:
What becomes cheaper for Indian consumers?
Indian consumers are also expected to benefit as import duties on several British products are reduced over time. While prices may not fall immediately, these products could gradually become more affordable:
However, the duty cuts will happen in phases. For example, tariffs on Scotch whisky and British-made vehicles will be reduced gradually over several years under a quota system.
Luxury cars to cost less
One of the biggest highlights of the trade deal is the reduction in import duties on premium British cars. At present, these vehicles attract import duties of up to 110%, making them very expensive in India. Under the new agreement, eligible vehicles imported within fixed quotas will see tariffs reduced step by step, making luxury British cars more affordable in the coming years.
- With inputs from agencies
