Indian electric, hybrid and plug-in vehicles have been offered limited concessional access under Tariff Rate Quotas (TRQs) through the free trade agreement signed with the UK on July 24, while conventional vehicles and auto components will get duty-free access.
India, on the other hand, has offered UK concessions on a quota of British cars by gradually lowering tariffs from over 100 percent to 10 percent over 10 years.
While the concessional quota for British cars will cover electric as well as hybrid vehicles, it will be limited to high-end vehicles alone, in an effort to safeguard India’s domestic automobile manufacturers.
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India’s engineering goods exports to the UK is expected to nearly double in the next five years, reaching over $7.5 billion by 2029-30 thanks to tariff concessions through the free trade agreement, the government said. UK has eliminated tariffs as high as 18 percent under the Comprehensive Economic Partnership Agreement (CECA) with India. Read More
Britain is India's sixth largest market for export of engineering goods, registering a growth of 11.7 percent in 2024-25 over the previous year. Shipments of key engineering products like electric machinery, auto parts, industrial equipment and construction machinery are projected to grow at a CAGR of 12-20 percent.
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The UK will also remove all tariffs on industrial and electrical machinery, which could aid India’s engineering exports and integration into advanced manufacturing supply chains. The agreement could also aid India’s broader target of achieving $250 billion in engineering exports by 2030, solidifying the UK’s position as a critical partner.
Read More: India-UK FTA: Indian electronics, textiles, pharma, chemicals to get zero duty access
Renewable energy machinery and electrical components too will face zero tariffs, supporting India’s clean energy exports to the UK.
Non-ferrous metals like copper, aluminium, nickel, zinc, lead, tin and other base metals will also enjoy zero-duty access to the British market.
Medical devices and instruments too will be exported to the UK at zero tariff, helping Indian manufacturers of surgical and diagnostic equipment, while aerospace and defence products too have been fully liberalised, enabling shipment of aircraft components and defense products.
India and the UK signed the free trade agreement on July 24, nearly three months after agreeing to the deal on May 6. The FTA will have to be ratified by UK's Parliament before it is operationalised.
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