London [UK], July 24 : India's average tariff on UK products will drop from 15 per cent to 3 per cent under the to-be-signed India-UK FTA, a British government statement said just ahead of the scheduled signing ceremony in presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.
The UK statement asserted that British companies selling products to India -- from soft drinks and cosmetics to cars and medical devices -- will find it easier to sell to the Indian market.
Further, British whisky producers will benefit from tariffs slashed in half, reduced immediately from 150 per cent to 75 per cent and then dropped even further to 40 per cent over the next ten years - giving the UK an advantage over international competitors in reaching the Indian market, the UK statement noted.
"Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change," Starmer said in the statement.
The statement added that the British Prime Minister will welcome nearly £6 billion in new investment and export wins, which will create over 2,200 British jobs across the country as Indian firms expand their operations in the UK and British companies secure new business opportunities in India.
The UK statement further added that these deals will drive jobs in high-growth sectors like aerospace, technology and advanced manufacturing - supporting engineers, technicians and supply chain workers, in every corner of the UK.
It also asserted that British workers will enjoy a collective uplift in wages of £2.2 billion each year and could also see cheaper prices and more choice on clothes, shoes, and food products.
The UK already imports £11 billion in goods from India, but liberalised tariffs on Indian goods will make it easier and cheaper to buy their best products, it added. "For businesses, this could mean potential savings when importing components and materials used in areas such as advanced manufacturing or luxury and consumer goods."
A reduction in tariffs, combined with a reduction in regulatory barriers to trade between the UK and India are estimated to increase UK exports to India by nearly 60 per cent in the long run - this is equivalent to an additional £15.7 billion of UK exports to India when applied to projections of future trade in 2040.
Also, it is expected to increase bilateral trade by nearly 39 per cent in the long run, equivalent to £25.5 billion a year, when compared to 2040 projected levels of trade in the absence of an agreement.
"The clean energy industry will have brand new, unprecedented access to India's vast procurement market as the country makes the switch to renewable energy and continues to see growing energy demand," the UK statement, referring to India's ambitious green transition goal.
Meanwhile, 26 British companies have secured new business in India, the UK statement noted.
Airbus & Rolls-Royce will soon begin delivering Airbus aircraft - with over half powered by Rolls-Royce engines - to major Indian airlines as part of around £5 billion worth of contracts recently agreed.
On May 6, Prime Minister Modi and his UK counterpart Keir Starmer announced the successful conclusion of a mutually beneficial India - UK Free Trade Agreement (FTA). This forward-looking Agreement is aligned with India's vision of Viksit Bharat 2047 and complements the growth aspirations of both the countries.
Commerce and Industry Minister Piyush Goyal is also in London for the crucial trade deal signing ceremony.
The idea behind the trade deal is to eliminate or reduce tariffs on imports and exports between the two nations. This should make Indian products competitive in the UK and vice versa. Both nations desire to increase their trade to USD 120 billion by 2030.
The FTA is expected to boost key sectors such as textiles, leather, footwear, sports goods and toys, marine products, gems and jewellery, engineering goods, auto parts and engines, and organic chemicals.
"The FTA ensures comprehensive market access for goods, across all sectors, covering all of India's export interests. India will gain from tariff elimination on about 99% of the tariff lines covering almost 100% of the trade value offering huge opportunities for increase in the bilateral trade between India and the UK," India's Commerce and Industry Ministry had said in its release on May 6.