Nuanced Duty Concessions Pave Way for Auto Sector Transformation under India-UK FTA

India's duty concession offer for the auto sector in its trade agreement with the UK is strategically detailed, incorporating variations based on engine capacity and vehicle costs, according to an official.

The agreement, concluded on May 6, protects India's sensitive sectors, gradually reducing import duties over a span of 10-15 years. This nuanced approach aims to lower tariffs on 99% of Indian exports and facilitates British imports like whisky and cars, with a target to double the current $60 billion trade by 2030.

Automotive tariffs will decrease significantly, from over 100% to 10%, under specific quotas, benefiting companies like Tata-JLR. While Tata Motors sees this as a boost, other luxury brands like Mercedes-Benz and BMW note little impact on car prices in India.

(With inputs from agencies.)