New Delhi [India], July 15 (ANI): The India-UK Comprehensive Economic and Trade Agreement (CETA) is expected to make a wide range of products more affordable for consumers in both countries by reducing or eliminating customs duties, while a limited number of imported goods may remain expensive or see little price change because of tariff exclusions and phased implementation.
The agreement, which took effect Wednesday, is designed to boost bilateral trade between India and the United Kingdom by improving market access for goods and services.
Under the pact, India will gradually reduce tariffs on a broad range of British products, while the UK will eliminate tariffs on nearly all Indian exports.
Among the products expected to become more affordable in India are premium Scotch whisky and gin. Import duties on these products will be reduced in phases.
The tariff on whisky, currently 150%, will initially be reduced to 75% and then gradually lowered to 40% over the next decade, making imported British spirits more affordable.
Luxury automobiles manufactured in the UK are also expected to become less expensive. Import duties on a specified quota of British vehicles will decline over time, potentially reducing prices for brands such as Jaguar Land Rover, Bentley, Aston Martin, and Rolls-Royce.
Consumers may also benefit from lower prices on selected British food and beverage products, including chocolates, biscuits, salmon, lamb, soft drinks, and specialty packaged foods, as customs duties are reduced under the agreement.
Certain cosmetics, medical devices, and industrial machinery imported from the UK could also become more competitively priced over time.
On the export side, Indian products are expected to benefit significantly from duty-free access to the UK market. Labor-intensive sectors, including textiles and apparel, footwear, leather goods, gems and jewelry, seafood, engineering products, auto components, organic chemicals, and processed foods, are expected to become more competitive, creating new export opportunities for Indian manufacturers.
The agreement is also expected to encourage greater investment and strengthen supply chain integration between the two economies.
However, not every British import will become cheaper immediately. Several sensitive agricultural products, dairy items, and other protected sectors have been excluded from tariff reduction commitments or remain subject to safeguard measures, meaning prices for those products are unlikely to change significantly.
Similarly, products subject to phased tariff reductions or import quotas are expected to see gradual, rather than immediate, price declines.
Retail prices will also depend on factors such as freight costs, currency exchange rates, domestic taxes, and retailer pricing strategies.
While lower-priced imports are expected to benefit consumers, the broader objective of the agreement is to expand bilateral trade, create jobs through increased exports, and attract greater investment. The long-term impact on consumer prices will depend on the pace of tariff reductions and the extent to which businesses pass on the savings from lower import duties. (ANI)
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