India–UK Trade Pact Unlocks Tariff Cuts on Cars and Spirits, Boosting Bilateral Flow

India and the UK have signed a landmark Free Trade Agreement that slashes import duties across key sectors, aiming to double bilateral trade to USD 120 billion by 2030.

Key Highlights

- India will reduce tariffs on up to 10,000 large combustion engine cars to 30 percent in the first year, down from over 100 percent.

- Mid-sized cars will see duties cut to 50 percent for a quota of 5,000 units in year one.

- By year six, the UK will allow imports of 17,600 electric, hybrid, and hydrogen-powered vehicles from India, each valued up to USD 80,000.

- Alcoholic beverages like Scotch whisky and gin will see duties halved from 150 percent to 75 percent immediately, with a further reduction to 40 percent over a decade.

Strategic Impact

- The deal enhances affordability of premium UK products for Indian consumers.

- Indian auto and EV exporters gain expanded access to the UK market under quota-based concessions.

- Alcobev majors expect accelerated premiumisation and broader retail reach.

Sources: Economic Times, Investing.com, Fortune India, India Today, Moneycontrol, Reuters, Times of India.