From Scotch to Supercars: India-UK FTA Brings British Luxury Within Reach

The recently signed India-UK Comprehensive Economic and Trade Agreement (CETA), often referred to as a Free Trade Agreement (FTA), is set to significantly boost bilateral trade and investment between the two nations, with a target to double current trade to $120 billion by 2030. This landmark deal will lead to reduced tariffs, open new market opportunities, and benefit various sectors and consumers in both India and the UK.

What India Gains

India will get duty-free access for nearly 99% of its exports to the UK. This is a massive win for:

Labour-intensive sectors: Textiles, clothing, marine products, gems & jewelry, leather, footwear, and toys will see significant growth.

Agriculture & Processed Foods: Products like spices, fruits, vegetables, and processed foods will enter the UK duty-free.

Key Industries: Pharmaceuticals, medical devices, chemicals, and engineering goods will also benefit from eliminated or reduced tariffs.

Services: Indian professionals (chefs, yoga instructors) and service providers will have easier temporary access to the UK market.

What the UK Gains

The UK will see India reduce tariffs on approximately 90% of its goods, with 85% becoming duty-free over ten years. This opens up India’s massive market for:

UK Exports: Average duties on British products will drop from 15% to 3%.

Public Procurement: UK firms can now bid on Indian government tenders in non-sensitive sectors.

What Becomes Cheaper for Indian Consumers

Thanks to reduced import duties, several British products will become more affordable in India:

Automobiles: Luxury cars like Jaguar, Land Rover, Rolls-Royce, and Bentley will see duties drop from over 100% to as low as 10% (under a quota).

Alcohol: Scotch whisky and gin duties will significantly decrease from 150% to 75% initially, then to 40% over ten years.

Consumer Goods: British soft drinks, cosmetics, beauty products, chocolates, biscuits, salmon, and lamb will all become more accessible.

Other Imports: Medical equipment and aerospace components from the UK will also be cheaper.

This FTA is set to boost economic ties, stimulate trade, and create new opportunities for businesses and consumers in both India and the UK.

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