What is Expected to Get Cheaper as India & UK Conclude Free Trade Agreement?
The recently-concluded India-UK Free Trade Agreement (FTA) has sent shockwaves of excitement across the business communities of both nations. The agreement, which marks a significant milestone in the economic relationship between India and the UK, is expected to bring numerous benefits to both countries. One of the most notable aspects of the agreement is the reduction in tariffs on various goods, making them cheaper for Indian consumers.
In this blog post, we will delve into the details of the agreement and highlight the goods that are expected to get cheaper as a result of the India-UK FTA.
Tariffs on Distilled Spirits to be Halved
One of the most significant benefits of the agreement is the reduction in tariffs on distilled spirits. As reported by Reuters, the tariffs on gin and whisky are expected to be halved from 150% to 75%. This means that Indian consumers will be able to enjoy their favorite spirits at a lower price. The reduction in tariffs will not only benefit the spirits industry but also lead to increased demand and exports from the UK to India.
Automotive Tariffs to be Cut
Another significant aspect of the agreement is the reduction in automotive tariffs. Currently, the tariffs on UK-imported vehicles stand at 100%. However, under the FTA, this tariff will be cut to 10%. This means that Indian consumers will be able to purchase UK-imported vehicles at a lower price. The reduction in tariffs is expected to boost the demand for UK-imported vehicles and lead to increased exports from the UK to India.
Other UK Goods to Face Lower Tariffs
In addition to distilled spirits and automotive vehicles, several other UK goods will also face lower tariffs as a result of the FTA. These goods include:
- Cosmetics: The tariffs on UK-imported cosmetics are expected to be reduced from 12.5% to 2.5%. This means that Indian consumers will be able to enjoy a wide range of cosmetics at a lower price.
- Chocolates: The tariffs on UK-imported chocolates are expected to be reduced from 30% to 10%. This means that Indian consumers will be able to indulge in their favorite chocolates at a lower price.
- Soft Drinks: The tariffs on UK-imported soft drinks are expected to be reduced from 30% to 10%. This means that Indian consumers will be able to enjoy a wide range of soft drinks at a lower price.
- Electrical Machinery: The tariffs on UK-imported electrical machinery are expected to be reduced from 10% to 2.5%. This means that Indian consumers will be able to purchase a wide range of electrical appliances at a lower price.
- Biscuits: The tariffs on UK-imported biscuits are expected to be reduced from 30% to 10%. This means that Indian consumers will be able to enjoy their favorite biscuits at a lower price.
Conclusion
The India-UK FTA is expected to bring numerous benefits to both countries. The reduction in tariffs on various goods will make them cheaper for Indian consumers, leading to increased demand and exports from the UK to India. The agreement will also boost the spirits industry, automotive sector, and other industries that rely heavily on imports from the UK.
As the agreement comes into effect, we can expect to see a significant reduction in prices of the goods mentioned above. This will not only benefit Indian consumers but also lead to increased economic activity and growth in the country.
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