India and the United Kingdom have signed a historic free trade agreement (FTA). This agreement will make the luxury cars of Britain cheaper in India and Indian exporters will also get a big benefit. This agreement will take trade between the two countries to new heights.
What is FTA and why is it special?
India and the United Kingdom have agreed to a historic ** Free Trade Agreement (FTA) **, which will give a new direction to trade relations between the two countries. The agreement has been signed after a conversation for more than three years.
The main objective of FTA is…
- Reduce business
- Reduce tariff on import-export
- Promote investment
Its direct benefit will be provided to the luxury cars of the British brand in India and sectors such as Textile, Marine Food, Leather Products and Auto Parts.
Tax reduction in tax on luxury cars
Till now, more than 100% import duty was levied on cars imported from Britain. But under the new FTA, this fee will be reduced to only 10%.
Which car brands will benefit from this…
- Jaguar land rover (jLR)
- Bentley
- Rolls-royce
- BMW’s Mini
- Aston Martin
- Norton motorcycles (tvs ownership)
The cars and motorcycles of all these brands will now be more economical and accessible in the Indian market. This is expected to cause a big stir in India’s luxury car market.
How much will prices be reduced in the Indian market?
According to car companies, 90% reduction in tax can cause a decline of 15 to 30 percent in the prices of these vehicles. For example:
| Brand | Current price (for ₹ lakh) | Estimated new price |
| Jaguar F-PACE | ₹ 78 Lakh | ₹ 60–65 lakhs |
| Range Rover Evoque | ₹ 73 Lakh | ₹ 55–60 lakhs |
| Mini cooper | ₹ 45 Lakh | ₹ 35–38 lakhs |
| Rolls royce ghost | ₹ 7.95 Crore | ₹ 6–6.5 crore |
Indian export sector will also benefit
FTA will not only make British products cheaper in India, but the tariff will also be abolished on 99% of the goods sent from India.
Which Indian sectors will be benefited…
- Textile and readymade garments
- Marine food
- Automotive components
- Leather and footwear
- James & Jewelery
This will also increase India’s manufacturing and export capacity, especially small and medium industries (MSME) will get better platforms in the international market.
Tax relief on scotch whiskey and alcohol
The British Scotch whiskey used to levy 150% import duty in India so far. According to FTA, this tax will now be reduced to 40% in ten years. This can give British alcoholic brands new customers in India and will fall in prices.
Business relations will get boost
- Estimated trade growth:
- Current Total Trade: £ 42.6 billion…
- Estimated increase by 2040: £ 25.5 billion
- Joint total trade by 2040: more than £ 68 billion
This is considered to be the most comprehensive trade agreement between India and Britain so far.
Professionals and traders comfort in traveling
In FTA, not only the exchange of goods, but also professional visits and business trips have been made easier. Although there was no major change in the immigration policy, the two countries have agreed to make the visa process more flexible and fast.
Political response
Both Prime Minister Narendra Modi and British Prime Minister Kir Starmer have praised the agreement. It has been described as a new strengthening step of India-UK relations.
This is the most important trading agreement on the FTA Brexit for the UK, from which it wants to further strengthen its global trade network.
This agreement for India is important…
- The price of luxury vehicles reduces a huge decrease
- Indian products new platforms in British market
- Textile, leather, food, auto sector will benefit in exports
- Options at cheap prices to Scotch and Whiskey enthusiasts
- Strength in commercial and diplomatic relations between the two countries
