Mumbai: India and the UK have reached a significant trade agreement, announced after discussions between Prime Minister Modi and UK Prime Minister. The negotiations for this deal had been ongoing for nearly three years. The agreement aims to boost bilateral trade to USD 120 billion by 2030. One key feature of the deal is that both countries will offer opportunities for each other's companies within their territories, with agreements on reducing duties on certain products.
Zero Duty on Specific Products
Several products will have zero duties under the deal:
Agriculture and Processed Foods
Animal Products: Previously, the duty was 20 per cent, but under the deal, 99.3 per cent of tariff lines will have zero duty.
Vegetable Oil Products: With 20 per cent duty, now 99.8 per cent of tariff lines will have zero duty.
Processed Food: Previously, duties could be as high as 70 per cent, now 99.7 per cent of tariff lines will have zero duty.
Other Product Categories
Minerals: Duty range up to 8 per cent.
Chemicals: Duty range up to 8 per cent.
Plastics and Rubber: Duty range up to 6 per cent.
Leather and Footwear: Duty range up to 16 per cent.
Wood/Paper: Duty range up to 8 per cent.
Textiles/Clothing: Duty range up to 12 per cent.
Glass/Ceramics: Duty range up to 12 per cent.
Gems and Jewelry: Duty range up to 4 per cent.
Base Metals: Duty range up to 10 per cent.
Mechanical Machinery: Duty range up to 8 per cent.
Electrical Machinery: Duty range up to 14 per cent.
Transport and Autos: Duty range up to 18 per cent.
Instruments/Clocks: Duty range up to 6 per cent.
Weapons: Duty range up to 2 per cent.
Furniture and Sports Goods: Duty range up to 4 per cent.
Artworks: Included as well.
Alcohol Industry’s Concerns
Indian alcoholic beverage industry representatives have expressed concerns over the deal, stating that the government has not fully addressed their demands for equal opportunities for domestic manufacturers. They also hope the agreement includes measures to prevent dumping and under-invoicing and removes non-tariff barriers.
