India UK FTA: Big deal between India and Britain will come into effect from July 15, cars and whiskey will be cheaper.

India UK FTA Deal: To strengthen trade relations between India and Britain, the Free Trade Agreement is going to come into effect from July 15. With the implementation of this agreement, the price of many British goods coming to India will be greatly reduced. There will be huge tariff reductions on imports and exports between the two countries, which is very important. Under this big and historic deal, everything from British Scotch whiskey to Defender cars will be available at much cheaper prices.

A detailed notification regarding this FTA was issued by the Directorate General of Foreign Trade in the month of June. This big agreement will greatly benefit the consumers of India as well as the big producers of Britain. The UK economy would be boosted by a massive £4.8 billion and real wages would rise by £2.2 billion. London is calling this important agreement the largest and most comprehensive trade agreement ever implemented by India.

Whiskey prices will decrease by 110 percent

Britain’s famous Scotch whiskey business is going to benefit most directly from this trade agreement. Currently in India, a heavy tariff of 150 per cent is imposed on foreign Scotch whiskey which is quite high. But now after the implementation of this FTA, there will be a big reduction in its price in several installments. The duty will be reduced to 40 per cent in installments, which means prices will be reduced by 110 per cent.

Luxury cars at 10% tariff

Under the new quota system in the FTA, the tariff on automobiles will also be reduced from 100% to just 10%. This simply means that Land Rover, Jaguar and Rolls Royce cars imported from Britain will be cheaper. Apart from this, great cars like Aston Martin and Defender will now be available at much cheaper prices than before. Initially, 20,000 cars can be easily imported at lower duty, which is a big relief for the customers.

Custom duty will reduce in 15 years

According to the notification, 10,000 cars ranging from 3000cc (petrol) to 2500cc (diesel) will be imported on which custom duty will be from 110% to 30%. Import duty on 5,000 cars ranging from 1500cc to 3000cc will be reduced from 66% to 50% which will then be reduced gradually. After about 15 years, the custom duty on these luxury cars will be reduced to just 10%. Additionally, tariffs of up to 22% on beauty products will also be abolished immediately or within 10 years.

Also read: Trump Sanctions: Trump’s big statement! Iran and Hezbollah will come under the sanctions imposed on Russia

Indian goods duty free in UK

Under this agreement, not only British but also Indian goods will be made duty free in UK. Clothes, shoes and many other important food products going from India have also been fully included in this exemption. currently textile garmentsIn the UK, there is 12 per cent duty on tin, 8 per cent on chemicals and 10 per cent on base metals. But now with this new deal, 99 percent of India’s goods will be easily exported to UK under zero percent duty.