India-UK FTA: India and the UK have signed the Comprehensive Economic and Trade Agreement (CETA) or to put it simply a free trade agreement with an aim to increase two-way trade to $112 billion by 2030.The trade deal ensures duty-free access for 99% of Indian exports to Britain, which includes almost all trade categories.According to the commerce ministry, “The bilateral trade between the two countries stands at nearly $56 billion, with a joint goal to double this figure by 2030.”The agreement will enhance exports from India’s labour-intensive industries like textiles and leather, whilst reducing prices of British automobiles and whiskey in the Indian market.The India-UK trade deal was formally signed in London on Thursday, with Prime Minister Narendra Modi and British Prime Minister Keir Starmer in attendance.Also Read | India-UK trade deal: How will the Free Trade Agreement benefit India? Top 10 takeaways for IndiansThe agreement was signed by Commerce and Industry Minister Piyush Goyal and Secretary of State for Business and Trade Jonathan Reynolds, whilst both Prime Ministers witnessed the ceremony.
India-UK Trade Deal: What Gets Cheaper for Indians?
- UK goods imported into India including soft drinks, beauty products, chocolates and biscuits, salmon, lamb, fish will be cheaper for Indian buyers, with tariffs dropping.
- For electric vehicles, the import duty will see a significant reduction from 110% to 10% within specified quotas.
- Premium British automotive manufacturers including Rolls-Royce, Jaguar Land Rover, Bentley and Aston Martin will see reduced prices in India following tariff reductions.
- Indian consumers and industries will benefit from reduced costs when importing medical equipment and aerospace components from Britain.
- The trade agreement will facilitate easier export of British products, particularly whisky, to India. The import duties on whisky will see a reduction from 150% to 75%, followed by a further decrease to 40% over a decade.
- The free trade agreement between India and the UK will lower tariffs on imported alcoholic beverages, enabling Indian consumers to access high-end international brands more readily, industry stakeholders suggest.
- However, experts point out that the advantages might be restricted, with potential price reductions capped at approximately Rs 300 per bottle.
Also Read | India-UK trade deal: From 99% duty-free access to benefits for Indian professionals – Here’s the FTA in 10 big numbers
