The India-UK trade deal was signed on July 24 during Prime Minister Narendra Modi’s special visit to Britain.
The agreement, signed in his presence, is expected to boost trade between the two countries and lower prices of many British goods imported into India.
What Will Become Cheaper in India?
Both India and the UK have agreed to reduce tariffs on each other’s products, with many tariffs completely removed within about 10 years.
India imports items like whisky, chocolates, biscuits, salmon, cosmetics, medical equipment, and cars from Britain. Under this deal, India will reduce tariffs on these goods, making them cheaper for Indian consumers.
Biggest Tariff Cuts on Whisky and Gin
The largest tariff cuts will be on whisky and gin. Initially, tariffs on these drinks will drop from 150% to 75%, and then continue to fall gradually to 40% over the next 10 years.
Currently, tariffs on British cars exceed 100%, but these will fall to 10%, although a quota will apply.
Luxury British Cars Will Become More Affordable
Experts predict that luxury British cars like Jaguar and Land Rover will become less expensive in India due to the tariff cuts.
The trade deal was signed by India’s Commerce Minister Piyush Goyal and UK’s Commerce Minister Jonathan Reynolds.
Britain will also reduce tariffs on Indian products, helping Indian goods become more competitive in the UK market.
Three Years of Negotiations
Representatives from both countries negotiated this deal for three years. It is expected to raise bilateral trade by up to $34 billion annually.
Prices of items like soft drinks and chocolates are also likely to fall in India, with average tariffs dropping from 15% to 3%.
Trade Expected to Reach $120 Billion by 2030
Experts estimate that trade between India and the UK will double to $120 billion by 2030 because of this agreement.
The deal is seen as beneficial for both nations, strengthening their long-standing trade relationship. The UK remains one of Europe’s strongest economies.
