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India and the United Kingdom have announced a Free Trade Agreement (FTA), bringing a wave of happiness among luxury car buyers. Under the agreement's terms, India will benefit from reduced tariffs on high-end cars imported from the United Kingdom. Presently, India levies over 100 percent of its duties on some imported vehicles. However, with the FTA in place, India will slash tariffs on made-in-UK cars and SUVs, bringing them down to 10 percent under a quota, as per the UK's Department for Business & Trade.
The details of the quota have not been shared. However, the reduced tariff will likely apply to a limited volume of imported cars and SUVs. This will eventually result in a reduction of over 90 per cent in total import duties on made-in-UK cars, which might reflect in the form of a substantial reduction in the prices of these vehicles.
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The Indian market presently has various models with their origin in the United Kingdom. For instance, models from brands like Bentley, Jaguar Land Rover, Aston Martin, Rolls-Royce, and Mini are imported from the UK to be sold in the country as CBU, resulting in a high price tag. The list also includes some two-wheeler manufacturers like Triumph Motorcycles.
In a announcement, the Indian government indicated that the FTA will beneficially influence manufacturing in both labor and technology-intensive sectors and is expected to create new export possibilities for the nation's automobile manufacturing industry, particularly concerning ‘auto components and engines'.
Addressing the FTA, Prime Minister Narendra Modi stated in his social media post on X (formerly twitter), “In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies.”
The details of the quota have not been shared. However, the reduced tariff will likely apply to a limited volume of imported cars and SUVs. This will eventually result in a reduction of over 90 per cent in total import duties on made-in-UK cars, which might reflect in the form of a substantial reduction in the prices of these vehicles.
Also Read: Hyundai Exter Gets Two New Variants: Here's What They Offer
The Indian market presently has various models with their origin in the United Kingdom. For instance, models from brands like Bentley, Jaguar Land Rover, Aston Martin, Rolls-Royce, and Mini are imported from the UK to be sold in the country as CBU, resulting in a high price tag. The list also includes some two-wheeler manufacturers like Triumph Motorcycles.
In a announcement, the Indian government indicated that the FTA will beneficially influence manufacturing in both labor and technology-intensive sectors and is expected to create new export possibilities for the nation's automobile manufacturing industry, particularly concerning ‘auto components and engines'.
Addressing the FTA, Prime Minister Narendra Modi stated in his social media post on X (formerly twitter), “In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies.”
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