FTA perks: UK gets to sell 22,000 premium EVs in India

The India-UK FTA includes provisions for EV trade, with the UK gaining access to a quota for selling 22,000 high-value EVs at a 10% duty, while India gets a quota for low- and mid-range EV exports to Britain. India will lower automotive tariffs to 10% from the current duty of more than 100%.

India-UK free trade agreement includes provisions to counter the UK’s Carbon Border Adjustment Mechanism (CBAM), set to begin January 1, 2027. India reserves the right to retaliate or seek compensation for losses incurred by its industries due to the CBAM. This “rebalancing” mechanism aims to shield India from potential disputes at the WTO.

Commerce and Industry Minister Piyush Goyal is scheduled to meet with Export Promotion Councils (EPCs) on May 8 to discuss the free trade agreement with the UK. The landmark deal aims to eliminate taxes on key Indian exports like leather and clothing, while reducing tariffs on UK imports such as whisky and cars.

India and the UK have finalized a free trade agreement. This deal seeks to strengthen economic relations between the two nations. British goods like Scotch whisky will become cheaper in India. Duties on Indian exports to the UK will decrease. The agreement covers various sectors including textiles and leather. Bilateral trade is expected to reach […]

Finance Minister Nirmala Sitharaman expressed optimism about finalizing a free trade agreement with the European Union by the end of the year, emphasizing its high priority for both sides. While aiming for closer trade ties, she criticized the EU’s Carbon Border Adjustment Tax, viewing it as a neocolonial approach to climate policy.

Asian Development Bank’s chief economist Albert Park suggests India’s proposed trade liberalization, including tariff reductions with the US, could benefit the nation if implemented on an MFN basis. He emphasizes the need for regulatory reforms and infrastructure upgrades to attract foreign investment and capitalize on supply chain diversification opportunities.

President Trump announced that India has agreed to eliminate its high tariffs, a move he attributes to his negotiation skills. He emphasized that India would not have made such an agreement with anyone else. Trump also outlined his vision for trade relations, suggesting countries will pay for the privilege of accessing the US market.

The India-UK FTA is poised to significantly benefit India’s labor-intensive export sectors, including textiles, garments, leather, and gems & jewellery, by eliminating tariffs. Indian textiles and garments exporters, previously facing tariffs up to 12%, will gain zero-duty access, potentially boosting apparel exports. The FTA is expected to enhance market access, encourage technology exchange, and substantially […]

India has proposed eliminating tariffs on steel, auto components, and pharmaceuticals for a specific import quantity in trade negotiations with the US. Beyond that threshold, standard duties would apply. This offer aims to expedite a bilateral trade deal expected by fall, prioritizing certain sectors before the end of the US tariff pause.

Recent data indicates a decline in electronics exports to India and the US from China during January and February, prompting concerns about a potential import surge. A high-level group is monitoring shipments from China and ASEAN, focusing on sectors like electronics and steel.