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New Delhi. The Free Trade Agreement (FTA) between India and Britain has come into effect from Wednesday. With the implementation of FTA, the price of British goods coming to India will reduce significantly, that is, they will become much cheaper, because huge tariff cuts will be seen on import and export. The date of implementation of India-UK FTA was announced last June. Under this big deal, everything from British whiskey to Defender car will be available at cheaper prices.

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Scotch-whisky prices will decrease by 110 percent

According to a notification issued by the Directorate General of Foreign Trade in the month of June regarding this FTA, the things which will become cheaper after the implementation of UK-India FTA. Among them, Britain’s Scotch whiskey business is going to benefit the most. Currently, 150 percent tariff is imposed on Scotch whiskey in India, but now after the implementation of FTA, its price will be reduced. The duty on this will be reduced to 40 percent in several installments. This means that gradually the price of Scotch whiskey will reduce by 110 percent.

Luxury cars will also become cheaper

Under the quota system in the FTA, the tariff on automobiles will also be reduced from 100% to just 10%. This means that cars like Land Rover, Jaguar, Rolls Royce and Aston Martin, Defender imported from Britain will be available at cheaper prices.

According to the notification, 20,000 cars can be imported at lower duty in the first year. 10,000 cars ranging from 3000cc+ (petrol) to 2500cc+ (diesel) will be imported. Whose custom duty will be reduced from 110% to 30%. 5,000 cars ranging from 1500cc to 3000cc can be imported. Import duty on these cars will be reduced from 66% to 50%. Later it will be reduced gradually. After 15 years, custom duty on these cars will be reduced to 10%. Apart from this, the tariff of up to 22% on many other products including beauty products will be eliminated under the FTA either immediately or for a period of up to 10 years.

Indian goods duty free in UK

Under India-UK FTA, Indian goods will be given tariff cut or duty free in UK. These include clothes, shoes and some food products. There is a duty of 12% in UK on textile garments. There is a duty of 8% on chemicals and 10% on base metals, but now with this deal, 99% of the goods will come under ‘0%’ in UK.

Boost to economy through FTA

According to the estimates made by the British Government last month, the Free Trade Agreement with India will add 4.8 billion pounds to the UK economy and will see an increase of 2.2 billion pounds in real wages. London is calling this agreement the largest comprehensive trade agreement ever implemented by India.