What is expected to get cheaper as India & UK conclude Free Trade Agreement?
The recently-concluded India-UK Free Trade Agreement (FTA) has sent ripples of excitement across the business and economic communities, with several UK exports expected to become cheaper and more accessible to Indian consumers. The agreement, which was signed on May 21, 2022, aims to increase trade between the two countries, promote economic growth, and create new job opportunities.
One of the most significant benefits of the FTA is the reduction in tariffs on distilled spirits. According to Reuters, the tariffs on gin and whisky will be halved from 150% to 75%, making these popular beverages cheaper in India. This is a significant development for the spirits industry, which has been seeking relief from the high tariffs imposed by the Indian government.
Another major beneficiary of the FTA is the automotive sector. Tariffs on UK-imported vehicles will be cut from 100% to 10%, making these vehicles more affordable for Indian consumers. This is expected to give a boost to the sales of UK-made cars and other vehicles in India, which has been a growing market in recent years.
But the benefits of the FTA are not limited to these two sectors. Other UK goods that will face lower tariffs include cosmetics, chocolates, soft drinks, electrical machinery, and biscuits. These products will become cheaper and more competitive in the Indian market, giving UK businesses a greater share of the Indian consumer market.
So, what does this mean for Indian consumers? With cheaper and more competitive UK goods, they can expect to see a wider range of products at more affordable prices. This is particularly good news for those who are looking for premium and high-quality products, which may not have been previously available in India due to high tariffs.
But the benefits of the FTA are not limited to consumers alone. UK businesses will also benefit from the reduced tariffs, which will make it more attractive for them to export their products to India. This is expected to lead to increased trade and investment between the two countries, creating new job opportunities and stimulating economic growth.
So, what are the key highlights of the India-UK FTA? Let’s take a closer look:
- Tariffs on distilled spirits (gin and whisky) will be halved from 150% to 75%
- Tariffs on UK-imported vehicles will be cut from 100% to 10%
- Other UK goods that will face lower tariffs include cosmetics, chocolates, soft drinks, electrical machinery, and biscuits
- The FTA aims to increase trade between the two countries, promote economic growth, and create new job opportunities
- The agreement is expected to give a boost to the sales of UK-made cars and other vehicles in India
- UK businesses will benefit from the reduced tariffs, making it more attractive for them to export their products to India
The India-UK FTA is a significant development in the economic relationship between the two countries. It is expected to have a positive impact on trade, investment, and economic growth, and will benefit both Indian consumers and UK businesses.
