India may cut average tariff on UK goods, sources say — Check what the FTA is likely to include

India is likely to cut the average tariffs for UK goods to 3% from the previous 15%, people in the know told CNBC-TV18 on Thursday, July 24.Prime Ministers of India and the UK are set to ink the free trade agreement (FTA) in London on Thursday, July 24. This is set to benefit the gems and jewellery, plastics and chemicals sectors and also impact India’s footwear, textiles, leathers, among other sectors, people in the know told CNBC-TV18.

Here’s what the FTA is set to include, as per sources:

• FTA will eliminate tariffs on 99% of marine exports from India, including shrimp, tuna, fish meal and feeds.
• Tariffs on Indian leather and footwear will be eliminated from 16% to zero.
• Duties on Indian textiles will be reduced from 12% to zero.
• India’s footwear, textiles and leather exports to UK will get preferential access over Bangladesh, Pakistan and Cambodia.
• Tariffs on engineering goods will be reduced from 18% to zero.
• India’s generic medicines market will get a boost with zero duty access to the UK market.
• Gems and jewellery, toys, plastics and chemicals sectors will benefit from tariff relaxation under the FTA.
• The free trade agreement will support the movement of professionals in critical and emerging technologies and digital trade.
• Zero duties on 95% of agriculture and processed food tariff lines.
• FTA excludes India’s core agriculture areas including dairy, apples, oats and edible oils.
• Duties have been eliminated on India’s agriculture exports of fruits, vegetables, cereals, pickle, spices, processed food and ready-to-eat foods.

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