What is Expected to Get Cheaper as India & UK Conclude Free Trade Agreement?
The recent signing of the India-UK Free Trade Agreement (FTA) has sent waves of excitement across industries, with many anticipating significant benefits from the new trade pact. While the agreement has been hailed as a major milestone in the economic relationship between the two nations, one question on everyone’s mind is: what can we expect to get cheaper?
According to reports, tariffs on gin and whisky are set to be halved from 150% to 75%, making the distilled spirits cheaper in India. This is a significant development for the Indian spirits industry, which has long been plagued by high import tariffs. The reduction in tariffs is expected to make British gin and whisky more competitive in the Indian market, potentially leading to increased sales and job creation.
Another key area that will benefit from the FTA is the automotive sector. Tariffs on UK-imported vehicles will be cut from 100% to 10%, making British cars and vans cheaper in India. This is expected to have a significant impact on the Indian automotive market, which is already one of the fastest-growing in the world. With lower tariffs, British car manufacturers such as Jaguar Land Rover and Rolls-Royce are likely to see an increase in demand for their products in India.
But it’s not just the automotive sector that will benefit from the FTA. Other UK goods that will face lower tariffs include:
- Cosmetics: With tariffs set to be reduced from 15% to 5%, British cosmetics companies such as L’Oréal and Unilever are likely to see an increase in sales in India.
- Chocolates: Tariffs on British chocolates will be cut from 45% to 15%, making premium brands such as Cadbury and KitKat more competitive in the Indian market.
- Soft drinks: Tariffs on British soft drinks will be reduced from 30% to 10%, making brands such as Coca-Cola and Pepsi more affordable in India.
- Electrical machinery: Tariffs on British electrical machinery will be cut from 15% to 5%, making high-tech products such as smartphones and laptops more competitive in the Indian market.
- Biscuits: Tariffs on British biscuits will be reduced from 30% to 10%, making premium brands such as McVitie’s and Jacob’s more affordable in India.
The benefits of the FTA extend beyond just the reduction of tariffs. The agreement also includes provisions for increased cooperation between the two countries on e-commerce, intellectual property, and small and medium-sized enterprises (SMEs). This is expected to create new opportunities for Indian and UK businesses to collaborate and invest in each other’s markets.
So, what does this mean for consumers in India? With lower tariffs and increased cooperation between the two countries, consumers can expect to see a range of benefits, including:
- Cheaper prices: With tariffs set to be reduced, consumers can expect to see cheaper prices on a range of British products, from spirits to cosmetics.
- Increased choice: The FTA is expected to lead to an increase in the availability of British products in India, giving consumers more choice and variety.
- Improved quality: With increased cooperation between the two countries, consumers can expect to see improved quality and standards in British products.
- New opportunities: The FTA is expected to create new opportunities for Indian and UK businesses to collaborate and invest in each other’s markets, potentially leading to the creation of new jobs and industries.
In conclusion, the India-UK FTA is a significant development that is expected to have a range of benefits for consumers, businesses, and industries in both countries. With tariffs set to be reduced on a range of products, from spirits to cosmetics, consumers can expect to see cheaper prices and increased choice. The agreement also includes provisions for increased cooperation between the two countries, which is expected to lead to new opportunities for businesses and the creation of new jobs and industries.
