The India-UK free-trade agreement (FTA) comes into effect and it is expected to increase the annual bilateral trade by $120 billion. This includes tar…
1/7The India-UK free-trade agreement (FTA) comes into effect and it is expected to increase the annual bilateral trade by $120 billion. This includes tariff cuts, improved mobility and market access guarantees. The average tariff on UK imports will drop from 15% to 3%. As much as 99% of the exports to the UK will now enjoy zero-duty access. Here are the sectors and stocks that come in to focus due to the FTA:
2/7Autos | India has offered concessions on large ICE Vehicles and electric vehicles (EV) in the higher price range. There is no concession to electric, hybrid and hydrogen vehicles in the first five years. In EVs, the market access is for vehicles costing over £80,000. Concessions and quotas on ICE includes 3,000 cc petrol and 2,500 cc diesel vehicles. This impacts stocks such as Tata Motors PV, Mahindra & Mahindra.
3/7Leather and footwear | The FTA eliminates tariffs on nearly 100% of Indian leather and footwear exports. Stocks such as Mirza Intenrational, Metro Brands can benefit from the same.
4/7Marine products and food | The trade agreement eliminates tariffs on more than 95% of agriculture, marine and processed food exports. The same will impact stocks such as Avanti Feeds, Apex Frozen, Coastal Corporation, Waterbase etc.
5/7Alcobev | India will reduce import duties on UK whisky and gin. The duty will reduce to 75% from 150% immediately and to 40% after 10 years. Stocks such as United Spirits, and Tilaknagar Industries benefit from the same.
6/7Gems and Jewellery | India’s exports to UK are at $941 million. UK imports $3 billion worth of jewellery annually. India’s exports are expected to double in the next two to three years. Titan, Kalyan Jewellers stand to benefit from the same.
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