The Free Trade Agreement (FTA) between India and the United Kingdom officially comes into effect today. The agreement was signed on July 25 last year after several rounds of discussions between the two countries.
Under the new trade deal, the United Kingdom has removed import duties on 99% of goods exported from India, offering a complete tariff exemption on these products. In return, India has agreed to reduce tariffs on 90% of goods imported from the UK.
The agreement brings major benefits to several Indian industries. Import duty on Indian textiles and garments, which was previously 12%, has been completely removed. Duties on leather and footwear products (16%), seafood products (21.5%), machinery and spare parts (18%), and chemicals and pharmaceutical products (8%) have also been reduced to zero.
On the other hand, India has agreed to lower import duties on British Scotch whisky and gin from 150% to 75%. The tariff will be gradually reduced further to 40% over the next ten years.Import duties on cars and vehicles, which previously ranged from 100% to 110%, will be reduced to 10% under a specified quota system. The agreement also protects the interests of Indian farmers by keeping important sectors such as dairy products, millets, edible oils, and apples outside the scope of the trade deal.
