Login to Continue Learning
India has introduced duty concessions to UK auto exporters under a new trade pact. The concessions focus on large petrol, diesel, and high-priced electric vehicles while protecting its domestic automotive sector, particularly mid-range and small cars, as well as budget-friendly EVs.
The Comprehensive Economic and Trade Agreement, signed in London by Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, outlines a phased reduction of import tariffs. Current import duties of around 110% will decrease to 10% under specific quotas, primarily benefiting vehicles with larger engine capacities.
This agreement marks India’s first auto tariff concession in any free trade agreement (FTA) and could set a precedent. It may inspire similar requests from other nations like Japan and the EU. The pact is expected to enhance market access for high-end British automotive brands, including those owned by Tata Motors, while maintaining protective measures for India’s small and mid-size automotive industry segments.
📚 Reading Comprehension Quiz
Under the new trade pact between India and the UK, what type of vehicles are primarily benefiting from reduced import tariffs?
Please login or register to take the quiz and earn points!
