What is Expected to Get Cheaper as India & UK Conclude Free Trade Agreement?
The India-UK Free Trade Agreement (FTA) has been signed, marking a significant milestone in the economic relationship between the two nations. The agreement is expected to bring numerous benefits to both countries, including increased trade, investment, and economic growth. One of the most significant advantages of the FTA is the reduction in tariffs on various goods, making them cheaper for Indian consumers. In this blog post, we will explore what is expected to get cheaper as a result of the India-UK FTA.
Distilled Spirits
One of the most notable benefits of the 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 means that Indian consumers can expect to pay less for their favorite gin and whisky brands. The reduction in tariffs will not only make these spirits more affordable but also increase their availability in Indian markets.
Automotive Tariffs
Another area where the FTA will have a significant impact is in the automotive sector. Currently, UK-imported vehicles are subject to a tariff of 100%. However, under the new agreement, this tariff will be reduced to 10%. This means that Indian consumers can expect to pay significantly less for UK-imported vehicles. The reduction in tariffs will make UK cars more competitive in the Indian market, which is expected to increase demand and drive economic growth.
Cosmetics and Chocolates
The FTA will also benefit Indian consumers who enjoy cosmetics and chocolates. Currently, these products are subject to tariffs ranging from 15% to 30%. However, under the new agreement, these tariffs will be reduced or eliminated altogether. This means that Indian consumers can expect to pay less for their favorite cosmetics and chocolates.
Soft Drinks and Electrical Machinery
Other goods that will benefit from the reduction in tariffs include soft drinks and electrical machinery. Currently, these products are subject to tariffs ranging from 15% to 20%. However, under the new agreement, these tariffs will be reduced or eliminated altogether. This means that Indian consumers can expect to pay less for these products, which will make them more competitive in the Indian market.
Biscuits
Finally, the FTA will also benefit Indian consumers who enjoy biscuits. Currently, biscuits imported from the UK are subject to a tariff of 15%. However, under the new agreement, this tariff will be reduced to 5%. This means that Indian consumers can expect to pay less for their favorite biscuits.
Conclusion
The India-UK Free Trade Agreement is expected to bring numerous benefits to both countries, including increased trade, investment, and economic growth. The reduction in tariffs on various goods is expected to make them cheaper for Indian consumers, which will increase demand and drive economic growth. Some of the goods that are expected to get cheaper include distilled spirits, automotive products, cosmetics, chocolates, soft drinks, electrical machinery, and biscuits. As the FTA comes into effect, Indian consumers can expect to enjoy more affordable prices for these products, which will make them more competitive in the Indian market.
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