India-UK Free Trade Agreement (FTA), which was finally signed on May 6, 2025, marks a milestone in bilateral trade relations, with the automotive and alcoholic beverage sectors particularly affected. This all-encompassing agreement seeks to promote economic cooperation between the two nations through a large-scale reduction of tariffs, in turn benefiting consumers and industries.
India-UK Free Trade Agreement: Impact on British Luxury Car Prices in India
In the new FTA, India has agreed to cut import duties on British automobiles from well over 100% to 10% over a given period of time. This is a major cut expected to bring down the prices of various expensive British car models considerably in India.
British Car Models Expected to Become More Affordable in India:
- Bentley Continental GT
- Rolls-Royce Ghost
- Jaguar F-Type
- Land Rover Range Rover
- Aston Martin DB11
In India, these models have always been considered luxury items and were, hence, priced at a substantial premium due to high import duties. Tariff reductions under the FTA imply that these automobiles will be offered at more competitive prices.
Also read: Mahindra XUV700: 5-Seater Says Goodbye
India-UK Free Trade Agreement: Broader Economic Implications
Trade between India and Britain is expected to double due to the FTA, resulting in around £25.5 billion ($34 billion) being added per year to the UK economy by 2040. This would mean considerable benefits.
Luxury goods will become cheaper and more plentiful for Indian consumers under the deal. On the other side, the agreement grants exporters from Britain access to one of the fastest-growing markets in the world, thereby enhancing economic growth and job creation.
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