UN-TAX THE RICH

Cars manufactured in the UK and imported to India will cost lower going forward as India-UK strike a trade deal.

- Saumya Shubham

While the world is stuck in a trade war, India and the United Kingdom have struck a Free Trade Agreement (FTA) that slashes duties on imported goods from the UK, and one of the biggest beneficiaries of FTA? The Indian vehicle market.

The FTA is set to dramatically reduce the cost of imported cars (Completely Built-Up Units - CBUs), especially luxury cars, and electric cars manufactured in the UK. The benefit is to be passed on via a phased Tariff Rate Quota (TRQ) system spread over 15 years, the agreement is expected to open the floodgates for British brands such as Rolls-Royce, Bentley, Jaguar Land Rover, Aston Martin, and McLaren.