The India-UK FTA includes provisions for EV trade, with the UK gaining access to a quota for selling 22,000 high-value EVs at a 10% duty, while India gets a quota for low- and mid-range EV exports to Britain. India will lower automotive tariffs to 10% from the current duty of more than 100%.
India will lower automotive tariffs to 10% from the current duty of more than 100%.“>
The UK would get access to a quota to sell 22,000 high-value EVs to India at the lower 10% duty, while New Delhi would get a quota to sell low- and mid-range EVs to Britain under the India-UK FTA.
Duty-free imports of internal combustion engine (ICE) vehicles from the UK is limited to a predefined quota under the pact, and the duty-free quota on electric vehicles (EV) is limited only to few thousands, people in the know of the development said.
India will lower automotive tariffs to 10% from the current duty of more than 100%. “There is no duty reduction for EVs outside this quota,” said one official.
India’s decision to cut tariffs on Scotch whisky to 75% immediately and 40% after ten years would only lead to an incremental increase in imports and not significantly affect the domestic market, the official said.
“A reduction of tariff from 150% will also help boost FDI in the sector,” the official said, adding that liberalisation of duties would invite the UK’s expertise in spirit making, quality control, marketing and consumer awareness.
Sensitive industrial products such as diamond, silver, base stations, smartphones, television camera tubes, optical fibres, optical fibres bundles and cables are excluded in the India-UK FTA. New Delhi has not given any duty benefits to imports of these items.
While India has not gained anything on visa-related issues from this FTA, the UK has offered mobility commitments to annually allow a combined 1,800 yoga instructors, classical musicians, chefs and independent professionals of computer and related services and research and development services, the official said.
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