What is Expected to Get Cheaper as India & UK Conclude Free Trade Agreement?
The recently-concluded India-UK Free Trade Agreement (FTA) has sent shockwaves across the globe, particularly in the economic sector. The agreement is expected to bring significant benefits to both countries, with several goods and services set to become cheaper for Indian consumers. In this blog post, we’ll delve into the details of what’s expected to get cheaper as a result of this historic agreement.
One of the most notable 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 for Indian consumers. This is a significant development, as the UK is home to some of the world’s most renowned distilleries, and Indian consumers will now have access to a wider range of high-quality spirits at affordable prices.
Another sector that will benefit from the FTA is the automotive industry. Currently, tariffs on UK-imported vehicles stand at 100%, but this will be reduced to 10% under the agreement. This means that Indian consumers will have access to a wider range of cars and other vehicles at competitive prices. The reduced tariffs will also make it easier for UK automobile manufacturers to export their products to India, which could lead to increased investment and job creation in the sector.
Cosmetics, chocolates, and soft drinks are also set to become cheaper as a result of the FTA. Tariffs on these products will be eliminated or reduced, making it easier for Indian consumers to access a wider range of international brands. Electrical machinery and biscuits are also among the products that will face lower tariffs, making them more affordable for Indian consumers.
But the benefits of the FTA don’t stop there. The agreement will also make it easier for Indian companies to export their products to the UK. According to the Indian Express, the FTA will eliminate tariffs on Indian goods such as textiles, apparel, and leather products, making them more competitive in the UK market. This could lead to increased exports and revenue for Indian companies, as well as job creation and economic growth.
The FTA will also simplify customs procedures and reduce bureaucracy, making it easier for businesses to trade between the two countries. This could lead to faster and more efficient trade, which could have a positive impact on the economy as a whole.
According to the Indian Express, the FTA is expected to increase bilateral trade between India and the UK by $23.9 billion (Rs 1.84 lakh crore) by 2030. This could have a significant impact on the economy, creating new jobs and driving economic growth.
In conclusion, the recently-concluded India-UK Free Trade Agreement is a significant development that is expected to bring numerous benefits to both countries. From cheaper distilled spirits and vehicles to increased exports and economic growth, the FTA is set to have a positive impact on the economy. As the agreement takes effect, it will be interesting to see how it plays out and what benefits it brings to Indian consumers and businesses.
