14 PLI sectors protected under trade agreement between India and UK

The India-UK free trade agreement has provisions to protect the country's 14 production-linked incentive (PLI) sectors such as electronics, mobile manufacturing, white goods, drugs intermediaries, auto components, specialty steel, solar modules and drones for five to 10 years, commerce ministry officials said on Sunday.

- Rajeev Jayaswal

The India-UK comprehensive economic and trade agreement (CETA), signed on Thursday, provides for gradual tariff reduction on India’s strategically important products, particularly those where domestic capacity is being built under flagship initiatives such as the Make in India scheme and PLI. Thus, they have protection at least between 5 and 10 years, said the officials cited above, requesting anonymity.

“Strategically important products, particularly those where domestic capacity is being built under flagship initiatives like PLI, concessions are made under CETA over periods ranging from five to ten years with gradual tariff reduction,” an official aware of the matter said.

According to CETA’s schedules of the tariff commitments, while pushbutton type of telephone sets from the UK will see tariff elimination from the date of entry into force (EIF) of the agreement, basic cell phones (HS code 85171400) will have duty protection for 10 years and smartphones (HS code 85171300) are in the exclusion list.

Both basic cell phones and smartphones currently attract 20% customs duty in India. A 10-year protection means the duty shall be removed in 10 equal annual instalments beginning on the date of entry into force of CETA.