What is expected to get cheaper as India & UK conclude Free Trade Agreement?
The recently-concluded India-UK Free Trade Agreement (FTA) has been making waves in the global trade scene, with many anticipating significant benefits for both nations. One of the most notable aspects of the agreement is the reduced tariffs on various goods, making them cheaper for Indian consumers. In this blog post, we’ll delve into the expected price drops and explore what this means for the average consumer.
Distilled Spirits
One of the most significant beneficiaries of the FTA is the Indian spirits industry. Tariffs on gin and whisky, currently standing at 150%, will be halved to 75%. This reduction will make these popular distilled spirits cheaper for Indian consumers. The lower tariffs will not only benefit the Indian spirits industry but also increase the availability of these products in the Indian market.
Automotive Sector
The automotive sector is another area that will see significant benefits from the FTA. Tariffs on UK-imported vehicles will be cut from 100% to 10%. This reduction will make UK-made cars more competitive in the Indian market, which is expected to lead to increased sales and a boost to the British automotive industry.
Cosmetics, Chocolates, and Soft Drinks
Other UK goods that will face lower tariffs include cosmetics, chocolates, soft drinks, electrical machinery, and biscuits. These products will become more affordable for Indian consumers, making them more competitive in the Indian market.
Electrical Machinery
The reduction in tariffs on electrical machinery will benefit Indian industries that rely heavily on imported equipment. This includes sectors such as manufacturing, construction, and healthcare, which will have access to cheaper and more efficient equipment.
Biscuits
The FTA will also make biscuits cheaper for Indian consumers. With tariffs reduced from 30% to 20%, UK-made biscuits will become more competitive in the Indian market, which is expected to lead to increased sales and a boost to the British baking industry.
What does this mean for consumers?
The reduction in tariffs on these goods will have a direct impact on Indian consumers. Here are a few ways in which they can expect to benefit:
- Increased availability: With lower tariffs, more UK-made products are likely to be available in Indian stores, giving consumers a wider range of choices.
- Lower prices: The reduced tariffs will lead to lower prices for Indian consumers, making these products more affordable.
- Improved quality: The increased competition in the Indian market is expected to lead to improved product quality, as UK manufacturers will need to compete with local products on price and quality.
Conclusion
The India-UK FTA is a significant development in the world of international trade, with far-reaching implications for both nations. The reduction in tariffs on various goods will make them cheaper for Indian consumers, increasing their availability and affordability. As the agreement comes into effect, Indian consumers can expect to see a range of UK-made products on their shelves, from distilled spirits to biscuits.
