India-UK trade: Government likely to cut duty on cars, whiskey
What's the story
India and the UK are making significant progress in their trade negotiations, with both countries demonstrating flexibility on crucial matters.
India has consented to reduce tariffs on British automobiles and scotch whiskey, while the UK is willing to relax certain visa regulations for Indian professionals.
The two governments are working toward finalizing the trade agreement by the end of the year, aiming to double bilateral trade by 2030.
Details
Import duty on premium cars will be 75%
Visa negotiations have proven to be particularly delicate, as India seeks greater access for its citizens. Immigration is a sensitive subject in the UK, with the Rishi Sunak government facing a significant challenge.
The discussions primarily revolve around temporary business visas for highly skilled workers.
India intends to lower import duties on cars to 75% from 100% and on scotch whiskey to 100% from 150%. There will be a steeper cut in the premium category.
What Next?
The countries are yet to agree on the treaty's framework
The current debate focuses on the criteria for import duty reductions under the proposed trade deal and India's suggestion for an investment protection treaty.
The UK and India have not yet reached a consensus on the framework of the treaty.
The UK still hasn't agreed to India's proposal to exhaust domestic judicial remedies before starting international arbitration.