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The newly signed Free Trade Agreement (FTA) between India and the United Kingdom is set to become a game-changer for India’s automobile industry. Under this deal, the heavy import duties on cars, bikes, and auto parts will be significantly reduced, paving the way for a surge in auto trade between the two nations.
According to the Indian government, import tariffs on auto products will drop from nearly 100% to just 10%, making it cheaper and easier for Indian companies to export their vehicles and components to the UK.
Trade Figures Speak:
In 2024, India imported cars worth ₹650 crore, motorcycles worth ₹30 crore, and auto parts worth ₹1,150 crore from the UK.
In return, India exported ₹1,590 crore worth of auto parts, ₹70 crore worth of tractors, and ₹50 crore worth of motorcycles to the UK.
Key Benefits of the FTA:
1.Luxury cars imported from the UK will become more affordable in India.
2.Exports of auto parts and electric vehicles (EVs) from India to the UK will rise.
3.Indian-made vehicles will become more competitively priced in global markets.
4.New employment opportunities will be created in India.
5.India will move closer to its goal of becoming a global hub for automobiles and EVs.
This FTA will not only deepen the economic partnership between India and the UK but also propel India's automobile sector towards new heights. With reduced trade barriers, Indian auto manufacturers are expected to make significant strides in international markets in the coming years.
