India and the United Kingdom signed the landmark Free Trade Agreement (FTA) today, about a month and a half after the trade deal was announced. The FTA was formalised in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer. India’s commerce minister, Piyush Goyal, was also present at the formal signing ceremony.
India-UK FTA: how it benefits new car buyers
In May, the two governments had announced that as part of the FTA, India would reduce tariffs on “high-end cars” imported from the UK from about 110 percent to just 10 percent. This has now been signed off on. However, a quota still has to be set for the number of UK-made models that can be imported at the reduced tariff rate. This would mean that buyers of premium and luxury cars made in the UK are expected to pay a much lower price for their imported model.
Which carmakers will benefit from the FTA?
Among the carmakers that will benefit from price reductions across their respective portfolios are Aston Martin, Bentley, JLR and Rolls-Royce, all of which manufacture in the UK and import select models to India. Mini India, which imports the Cooper from the UK, had already announced a price protection programme meant to pass on the benefits of any reduction in the Mini 3-Door’s price.
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