𝗜𝗻𝗱𝗶𝗮 𝗨𝗞 𝗙𝗿𝗲𝗲 𝗧𝗿𝗮𝗱𝗲 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁 𝗦𝘁𝗮𝗿𝘁𝘀 𝗝𝘂𝗹𝘆 𝟭𝟱
India and the United Kingdom will implement a new free trade agreement on July 15. This agreement reduces tariffs and increases market access between both nations.
Key economic projections include: • Annual bilateral trade increases by £25.5 billion. • UK GDP grows by £4.8 billion. • UK real wages increase by £2.2 billion. • UK tariffs decrease by £400 million in the first year.
Specific tariff changes include: • British whisky tariffs in India drop from 150% to 40%. • Automobile duties fall from 100% to 10% under a quota system. • Cosmetic tariffs decrease by up to 22% through immediate elimination or a ten-year phase-out. • UK tariffs on Indian clothing, footwear, and food products will decrease.
The agreement also includes the UK-India Double Contributions Convention Agreement. This rule allows UK nationals in India and Indian professionals in the UK to pay social security into their home country for up to 60 months. This prevents the need for parallel payments in the host country.
Businesses have 28 days to prepare for these changes. Companies must complete registration with HM Revenue and Customs to receive tariff benefits.
Source: The Times of India