What is expected to get cheaper as India & UK conclude Free Trade Agreement?
The India-UK Free Trade Agreement (FTA) has recently been signed, and this development is expected to have a significant impact on the prices of various goods in India. The agreement, which was announced on May 21, 2022, aims to increase bilateral trade between the two countries by reducing tariffs and other trade barriers. In this blog post, we will explore what goods are expected to become cheaper in India as a result of this agreement.
Distilled Spirits to Get Cheaper
One of the most notable benefits of the India-UK FTA is the reduction in tariffs on distilled spirits. Currently, gin and whisky imported from the UK are subject to a tariff of 150%. However, under the new agreement, this tariff will be halved to 75%. This reduction in tariff is expected to make these spirits cheaper in India, which is good news for spirits enthusiasts and bars in the country.
Automotive Tariffs to be Cut
Another significant benefit of the India-UK FTA is the reduction in automotive tariffs. Currently, UK-imported vehicles are subject to a tariff of 100%. Under the new agreement, this tariff will be cut to 10%. This reduction in tariff is expected to make UK-imported vehicles cheaper in India, which is good news for car buyers and the automobile industry in the country.
Other UK Goods to Face Lower Tariffs
In addition to distilled spirits and automotive goods, other UK goods are also expected to face lower tariffs as a result of the India-UK FTA. These goods include:
- Cosmetics: The tariff on cosmetics imported from the UK will be reduced from 20% to 10%.
- Chocolates: The tariff on chocolates imported from the UK will be reduced from 20% to 10%.
- Soft drinks: The tariff on soft drinks imported from the UK will be reduced from 20% to 10%.
- Electrical machinery: The tariff on electrical machinery imported from the UK will be reduced from 20% to 10%.
- Biscuits: The tariff on biscuits imported from the UK will be reduced from 20% to 10%.
Benefits of the India-UK FTA
The India-UK FTA is expected to have several benefits for both countries. For India, the agreement will increase access to the UK market, which will help Indian businesses to increase their exports to the country. The agreement will also reduce the cost of imports, which will make goods cheaper for Indian consumers. For the UK, the agreement will increase access to the Indian market, which will help British businesses to increase their exports to the country.
Conclusion
The India-UK FTA is a significant development for both countries, and it is expected to have a positive impact on bilateral trade. The reduction in tariffs on distilled spirits, automotive goods, and other UK goods is expected to make these goods cheaper in India, which is good news for consumers and businesses in the country. The agreement is also expected to increase access to the UK market, which will help Indian businesses to increase their exports to the country.
News Source:
