India and Britain There is a free trade agreement (FTA). After this, both countries will give relief in the tariffs on the goods imported here. Due to this, the price of many goods will be low in India. A similar effect will be seen in Britain. The price of Indian goods exported there will be low. However, in the meantime many wrong information has also started floating. Explanation has now been issued regarding this. A Government of India official said that India has not given any duty concession on Britain’s wine under the FTA, while limited import duty benefits on beer.
There is no relief on agricultural products
The Free Trade Agreement (FTA) has been completed on 6 May in India and Britain. After this deal, India has now clarified that it will not cut import duty on some sensitive agricultural products. These include dairy products, apples, cheese, oats, animals and vegetable oils. According to an official, the excluded list of the trade agreement includes wine along with several other agricultural products. India has also decided to give fees exemption to a limited extent only on British beer. Under this FTA, Britain’s Scotch whiskey and cars in India can be cheaper than before.
Britain gave relief on goods
On the other hand, Britain has decided to reduce import duty on costumes and leather products exported from India. Under the agreement, India will reduce the currently 150 percent fee on British whiskey to 75 percent, and will gradually be brought up to 40 percent by the 10th year of the agreement. India does not give any fee concession on wine strategically, as the European Union is a major player in the region. If Britain was given the benefit of this exemption, the European Union could also demand equal concession on its wine, which could put additional pressure on India.
The price of Jaguar-Land Rover will decrease
It has been decided to deduct the duty on imported vehicles from Britain, under which the existing 100 percent fee will be reduced to only 10 percent. This will give a big benefit to companies like Tata Group’s JLR (Jaguar-Land Rover). This reduction in fee may reduce the prices of luxury trains like JLR as well as Rolls-Royce, Eston Martin and Bentley in India to a great extent.
However, the government has taken a cautious stand on electric vehicles (EVS). The quota of EV imports at a concessional duty rate is limited to only a few thousand units. No fee has been deducted on electric vehicles coming out of the quota. Similarly, the duty out of the quota on the internal combustion engine (ICE) vehicles has not been reduced immediately, rather it will be gradually reduced in a long period to get the country’s domestic automobile industry time to deal with increasing imports from Britain.
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