Last month, the UK and india finalized the 'India-UK Vision 2035' and the Comprehensive Economic and Trade Agreement (CETA), aiming to more than double bilateral trade from $56 billion by 2030. Key features of the FTA include tariff-free access for 99% of indian exports to the UK, particularly benefiting labour-intensive sectors and luxury industries.
Indian luxury sectors such as automobiles, spirits, beauty, and fashion are poised to gain significantly. british luxury car brands like Rolls-Royce and Jaguar land rover will now face only a 10% duty under a quota system, a major reduction from previous tariffs of over 100%. This change is expected to make these high-end vehicles more accessible to indian consumers, with potential price drops of up to 50%.
The FTA also reduces duties on UK spirits from 150% to 75%, enhancing the availability of premium products like Scotch whisky in India. Other UK exports, including chocolates and soft drinks, will benefit from similar tariff reductions, with the average tariff on UK imports dropping from 15% to 3%.
For indian luxury brands, this agreement opens access to a vital global market. Sectors such as textiles and handicrafts are expected to flourish, with near-total tariff eliminations predicted to double exports. The FTA fosters a conducive environment for investment and cultural exchange, allowing indian craftsmanship to resonate with british consumers.
Overall, this agreement not only strengthens economic ties but also enhances India’s global positioning post-Brexit, paving the way for increased trade, job creation, and cross-border collaboration..jpg)
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