No duty cuts on British wine in India-UK trade deal
What's the story
India will not provide any duty concessions on British wines under the recently announced Free Trade Agreement (FTA) with the UK, according to PTI.
The FTA, announced on May 6, offers limited import duty benefits for British beer.
Other sensitive agri-products such as dairy, apples, cheese, oats, animals, and vegetable oils are also not included in this deal.
The FTA is currently undergoing legal vetting and is expected to be implemented in over 15 months.
Trade impact
FTA will make British Scotch whiskey, cars cheaper in India
The FTA between India and the UK will make British Scotch whiskey and cars cheaper in India.
On the flip side, it will lower duties on Indian imports like garments and leather products in the UK.
Under this deal, India intends to gradually lower duty on UK whiskey and gin from 150% to 75% and then to 40% in the 10th year. However, there are no duty concessions for wines under this deal.
Market reassurance
Indian whiskey players reassured
Concerns raised by Indian whiskey players regarding the effect of duty cuts on Scotch whiskey under the pact have been allayed.
The official said these reductions won't affect the domestic market much as they will be implemented gradually over a decade and have low import volumes.
The FTA, which has been negotiated since 2022, is expected to be made public by August-September this year after the legal review, with signing and ratification to follow.