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India-UK Finalize Landmark Free Trade Agreement with Phased Tariff Reductions

The deal includes significant duty cuts on whisky, gin, and automobiles while protecting sensitive sectors, with implementation pending legal and parliamentary processes.

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Overview

  • India will reduce import duties on UK whisky and gin from 150% to 75% immediately and to 40% over ten years, boosting accessibility to premium brands.
  • The agreement excludes a Minimum Import Price provision for British alcohol, despite demands from domestic producers to curb under-invoicing and dumping.
  • Tariffs on UK automotive imports will drop to 10% over 10–15 years under quotas, with differentiation based on price bands and engine capacity.
  • Sensitive agricultural and industrial products, including dairy, apples, cheese, and plastics, are excluded from tariff concessions to protect domestic industries.
  • The FTA is expected to enhance Indian exports of textiles, footwear, carpets, and marine products to the UK, which currently face tariffs of 4–16%.