For UK Prime Minister Keir Starmer, this agreement is one of the biggest steps toward reviving the British economy in the post-Brexit era, while for India, it is considered a historic step toward increasing its competitiveness in global markets.
Under the agreement, India has agreed to reduce 90% of its total customs duties. In particular, the average tax rate applied to UK products will be reduced from 15% to 3%. In addition, the 150% customs duty on Scotch whisky will be immediately reduced to 75% and gradually reduced to 40% over the next ten years.
An important regulation has also been introduced for electric vehicles. The 110% customs duty applied to these vehicles will be reduced to 10% under a quota-based system.
The agreement was signed during a period parallel to India's negotiations with major trading partners such as the European Union and the United States, reflecting the country's efforts to further strengthen its role in global trade.
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