FTA Excludes Most Industrial Goods from Duty Concession
An official has affirmed that most industrial products coming in from the UK will not get duty concessions under the new free trade agreement (FTA). Diamonds, silver, mobile phones, and optical fibres are the goods that fall out of scope.
The ministry official clarified that such products are beyond the purview of the trade pact agreed with Britain. The treaty pertains to few commodities and not to many high-value or technical imports.
Luxury Cars Have Limited Duty Relief
Duty cuts will only come in for petrol and diesel cars from the UK, under a quota. Luxury British luxury car makers like Bentley, BMW, Rolls-Royce, and Aston Martin fit into this group. But a customs duty cut will come in only for a few thousand units of electric vehicles (EVs).
FTA Omitted A Few Industrial Goods
The deal does not give duty benefits to some industrial imports. These are:
- Plastics
- Diamonds
- Silver
- Smartphones
- TV camera tubes
- Optical fibers
- Fiber bundles
- Optical cables
Since these items are exempted, importers will pay the normal tariffs.
FTA Benefits for UK Exports and Trade Objectives
The agreement will simplify export procedures for UK goods like:
- Whisky
- Cars
- Other selected products
India and the UK target increasing bilateral trade to $120 billion by 2030.
British Companies Permitted in Central Government Procurement
FTA allows British businesses to participate in Indian central public sector enterprises' procurement. This has been done by following a similar gesture previously made to the UAE. State-level and local-level enterprises are left out of this deal.
The only companies falling under this procurement opportunity are non-specified companies at the central level.
