Prime Minister Narendra Modi announced on Tuesday the successful conclusion of the historical free trade agreement (FTA) between India and the United Kingdom, describing it as a milestone in the economic partnership of the two countries. The agreement was completed after a conversation between the Prime Minister and the Prime Minister of the United Kingdom, Kiir Starmer.
Described as a useful and aspiration agreement for the two parties, the Free Trade Agreement does not only enhance bilateral trade, but also includes a double-joint-stock agreement that is a separate social security agreement that offers Indian workers in the United Kingdom from double social security payments for a period of three years.
One of the prominent features of the Free Trade Agreement is important tariff cuts, especially the creation of zero access to a wide range of Indian exports to the United Kingdom. This is expected to enhance the competitiveness of manufacturing and export in India, especially in the intensive sectors of employment.
The UK government has announced that India will reduce the customs tariffs by 90 % of the UK imports, as 85 % of them are free of customs tariffs over the next ten years.
Falling tariff: alcohol, cars between the gains of the United Kingdom
The customs tariffs on the whiskey and jinn in the imported UK will currently decrease by 150 %, to 75 % immediately and reduce it to 40 % by the tenth year of the agreement.
Car imports from the UK, which attract more than 100 %, will be reduced to 10 % under a class -based system.
These cuts are expected to give a large price of whiskey and Scotch cars in the UK in the Indian market. However, this step can intensify competition for Indian alcohol companies, especially in the excellent alcobev sector, where local brands recently expanded their global ambitions.
“Although the details of the Free Trade Agreement are still waiting, from the information we collected, it seems that the government has not fully absorbed the appeals of Indian alcoholic drink. We have always requested a field for Indian players for Indian players. We only hope that the government has been included in the free trade agreement (MIP” (the minimum import price) that will prevent access to the treasury. Annant said. Ire, the general manager of Indian alcoholic beverage companies, said that if the same template is followed by the customs duties with the European Union, the United States and other countries that produce lives and wine, the Indian alcopiff industry, including the wine sector, may be negatively affected.
He added: “The government is looking to touch exports of one billion dollars from the Indian Cuban industry by 2030. However, without ensuring an appropriate arrival in the market, especially to Western countries, it will be difficult to meet the goal of export. Although it will be difficult for the Indian Cubel Cuban sector to achieve the goal of export.”
Zero is a duty on 99 % of Indian export lines
An unprecedented free trade agreement provides fluid to Indian exporters. More than 99 % of the tariff lines in India will enjoy a zero in the UK, which covers approximately 100 % of the commercial value. This is expected to significantly enhance India’s exports through agriculture, processed foods and industrial goods.
📦 The main products categories acquire zero access to the United Kingdom
| category | The extent of the pre -fta duty | FTA tariff results |
|---|---|---|
| Animal products | Up to 20 % | 99.3 % tariff lines in zero duty |
| Vegetable/oil products | Up to 20 % | 99.8 % tariff lines in zero duty |
| Treated food | Up to 70 % | 99.7 % tariff lines in zero duty |
| Minerals | Up to 8 % | Zero |
| Chemicals | Up to 8 % | Zero |
| Plastic/rubber | Up to 6 % | Zero |
| Leather/shoes | Up to 16 % | Zero |
| Wood/paper | Up to 10 % | Zero |
| Fabric/clothing | Up to 12 % | Zero |
| Head cover/glass/ceramic | Up to 12 % | Zero |
| Gemstones and jewelry | Up to 4 % | Zero |
| Basic minerals | Up to 10 % | Zero |
| Mechanical machines | Up to 8 % | Zero |
| Electrical machines | Up to 14 % | Zero |
| Transport components/cars | Up to 18 % | Zero |
| Tools/watches | Up to 6 % | Zero |
| Weapons and ammunition | Up to 2 % | Zero |
| Furniture/sports goods | Up to 4 % | Zero |
| Artwork | 0 % | Zero |
What does this mean for India
This disposal of import duties in Indian goods function in India is more depth in the UK and global supply chains. This will be a big boost for the shapes of small and medium companies, the creation of job opportunities, the sectoral competitiveness, especially in sectors such as textiles, shoes, food processing, engineering goods, precious stones and jewelry.
The Free Trade Agreement determines a new standard for future trade agreements, mixing economic diplomacy with strategic ambition, while strengthening India’s position as a reliable global trade partner.
“Assyocham, on behalf of the Indian industry, praises the Prime Minister Modi for his leadership in concluding a commercial agreement to break the path with the United Kingdom. This agreement is announced in India-UK, investment, investment, investment, and suggestions, outperforms that, outperforms that, exceeds that, and exceeds that, and investment and investment. , Investment, investment, investment, investment, second, investment, investment, investment, and the second.
Both countries are also pursuing individual agreements with the United States to eliminate some definitions implemented by US President Donald Trump, which have disrupted the World Trade System. As a result, there is an increasing focus in London and New Delhi on the final touches on a trade deal between the United Kingdom and India.
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