India and Great Britain will sign a free trade agreement on Thursday during a visit to Prime Minister Narendra Modi in London. The free trade agreement, when formalized, will be cheaper to export goods demanding goods such as leather, shoes and clothing, while reducing import costs of whiskey and Britain cars. The pact also helps the double trade between the two economies at $ 120 billion by 2030.
Here are the key points of the free trade agreement in India-UK:
According to Reuters India, it will reduce tariffs to nearly 90 % of the British goods.
This means that whiskey and gin left will drop from 150 % to 75 %, then 40 percent in ten years.
Cars from Britain will also probably be cheaper because the car tariff is likely to drop from 100 % plus to 10 percent below quota
Cosmetics, medical devices, salmon, chocolates and biscuits will face smaller tariffs.
The United Kingdom offers a duty -free access to 99 % of Indian subjects, according to the Indian Ministry of Trade, covering almost 100 % of business value.
How is the agreement beneficial to India and the UK?
Indian exports of textiles, shoes, gems and jewelry, furniture, automatic parts, chemicals, machines and sports goods are likely to face zero duties in the UK, from the current 4 % to 16 percent.
According to the Ministry of Indian trade, access to visitors and providers of contractual services, as well as yoga instructors, chefs and musicians for temporary stay, will be provided in the UK in the UK.
Indian workers temporarily working in the UK and their employers will be exempt from paying social security contributions in the UK for three years, while savings are estimated to £40 billion ($ 463 million) annually, Reuters reported.
India will allow British suppliers to offer nonsense federal government offers, with a threshold on £2 billion.
The agreement will provide British enterprises to the Indian Public Procurement Market, which includes about 40,000 offers with a value of about £ 38 billion per year, according to the UK government estimates.
(With Reuters research and inputs)
(Tagstotranslate) India UK UK UK Agreement on Free Trade (T) Prime Minister Narendra Modi London Visit
