India’s duty cuts on British automobile imports under the India-UK Free Trade Agreement (FTA) primarily apply to the luxury vehicle segment, while the Carbon Border Adjustment Mechanism (CBAM) is excluded, a UK official confirmed. Tariffs on a limited quota of vehicles will be reduced from over 100% to 10%.
The FTA protects sensitive sectors on both sides: dairy products for India and sugar and milled rice for the UK. The treaty, spanning thousands of pages, will undergo detailed legal review over the next few months before parliamentary approval.
Key provisions include mobility commitments, allowing 1,800 professionals such as yoga instructors and chefs to work annually in each country. The deal also opens government procurement, enabling UK firms to bid for Indian public projects.
Separately, the trade pact with the EU is progressing quickly and may conclude soon. Discussions are ongoing to create a centralized exporters’ data portal to boost trade transparency.
The Indian government has allocated ₹18,233 crore for the RODTEP scheme this financial year, supporting over 10,750 export product categories. Benefits for goods manufactured in SEZs and export-oriented units have been restored from June 1.
The India-UK FTA is expected to increase bilateral trade by £25 billion.