Source money control
New Delhi, Feb 15: The long-awaited trade agreement between India and the United Kingdom is expected to be implemented as early as April, marking a major step in strengthening economic ties between the two countries. The deal, which has been under negotiation for several years, is set to significantly reduce tariffs on key sectors including automobiles and premium alcoholic beverages.
Under the proposed framework, import duties on British whisky — especially Scotch — will be gradually lowered, making it more affordable for Indian consumers. At present, India imposes some of the highest duties on imported liquor globally, often exceeding 100%. Industry experts believe the reduction could boost legal imports and discourage grey-market sales.
The automobile sector will also benefit from the pact. The agreement is expected to reduce tariffs on select UK-manufactured cars, improving market access for British luxury brands while opening opportunities for Indian auto exports to the UK. Officials say the deal aims to create a balanced trade flow rather than a one-sided import surge.
Government sources indicate that the pact will include safeguards to protect domestic manufacturers through phased tariff reductions and import quotas. Indian exporters, particularly in textiles, pharmaceuticals, and engineering goods, are likely to gain easier entry into the UK market.
Economists estimate the agreement could substantially increase bilateral trade in the coming years, which already exceeds tens of billions of dollars annually. Policymakers from both countries have described the agreement as a “win-win” arrangement designed to deepen investment, boost job creation, and diversify supply chains.
If implemented on schedule in April, the agreement would become one of India’s most significant trade deals after Brexit, signaling closer economic cooperation between the two major economies.
