Government sources have indicated that the recently concluded negotiations between India and the United Kingdom (UK) for a Free Trade Agreement (FTA) will significantly boost Indian exports and double bilateral trade volumes to $120 billion by 2030.
The joint legal scrubbing of the agreement is currently underway and the mutually agreed text is expected to be finalised within the next three months. The FTA will then be sent for ratification — by the Cabinet in India and by Parliament in the UK.
The deal includes duty-free access for Indian goods on 99% of tariff lines, which account for nearly 100% of trade value. Sources said Indian exports such as internal combustion engine vehicles, fruits, vegetables, processed foods and cereals will benefit from zero-duty access in the UK on 95% of tariff lines. In return, India will reduce tariffs on 90% of UK imports.
Importantly, India has retained duties on low-cost futuristic cars, with tariff cuts phased in over 15 years — a timeline by which India is expected to sell over one crore cars annually.
A separate Bilateral Investment Treaty is also being negotiated by the Department of Economic Affairs.
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On Scotch whisky, which represents only 2.5% of India’s whisky market, sources clarified that duty cuts would not hurt domestic producers, given the product’s limited availability and GI-linked production.
Commerce and Industry Minister Piyush Goyal has held consultations with export promotion councils and industry bodies to assess the deal’s impact.
(Edited by : Sheersh Kapoor)