What India-UK tariffs deal means .... 1991 Economic liberalisation was one big step .... 34 years later now this is pathbreaking

(After the trade deal was inked PM Narendra Modi was hosted by the King Charles at his private estate in Norfolk)

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The EU is the biggest trade partner for both the UK and India. Therefore, a free trade agreement between India and the EU would be more significant than the one with the UK. 

King Charles hosts Namo 

Indian manufacturers are expected to gain access to the UK market for electric and hybrid vehicles.

For more than 30 years since 1991; the trade barriers have been slowly and gradually dismantled.

India has woken up -- as they put it - to the benefits of lowering obstacles to trade. We, Indians have learned that we have the right aptitude to compete globally, notably in multiple sectors.

Indians have given run-for-money type competitions to the IT, pharma, back office processing, and also in manufacturing.

Over the years, Indian consumers have shown the liking for firangi brands -- from shoes to medical devises. 

And as more people have joined India's middle class, by the hundreds of millions, they have put more pressure on the government(s) to give them access to 'imported products'.

Scotch whisky is certainly one of them. Despite having a 150% tariff and other non-tariff barriers, Indian imports of Scotch have grown to become the biggest national market by volume, overtaking France.

Of course the USA still remains the biggest by value. Alcohol has a story by itself in Mahatma Gandhi's India and more so in the Father of the Nation's home state - Gujarat. Prime Minister Narendra Modi also hails from the same state. 

Gujarat  has long banned consumption or sale of alcohol, with a few exceptions. 

Whisky tariffs for exports to India have been slashed in half, from 150% to 75%, giving the UK an immediate advantage over international competitors in reaching the Indian market, and the tariff will drop to 40% by 2035.

King Charles has held talks with Prime Minister Modi at Sandringham.

Indian textiles and jewellery will be now cheaper to export to the UK under the multi-billion pound export boost. Cars from the UK will be cheaper in India.

The deal took three years to reach and also commits to a new India-UK plan to tackle illegal migration.  

The UK has lowered taxes on goods imported from India including:

clothing and footwear

food products including frozen prawns

jewellery and gems

some cars

India has cut taxes on goods imported from the UK including:

cosmetics

scotch whisky and gin

soft drinks

higher-value cars

food including lamb, salmon, chocolate and biscuits

medical devices

aerospace

electrical machinery

The deal will also allow British firms to compete for more services contracts in India.  

The UK's deal with India is its third biggest after its agreements with Australia and Japan. For context, the UK has signed trade deals and agreements in principle with about 70 countries and one with the EU.

Both India and the EU have said they aim to finalise this by the end of 2025. 

India accounts for about 2% of the UK's goods trade lower than Turkey and UAE. 

ends