BMW for faster, simpler rollout of FTA duty cuts

The process of implementing import duty cuts under newly signed free-trade agreements (FTAs) with other countries should be simpler and quicker, said Hardeep Singh Brar, president and chief executive officer (CEO) of BMW Group India. Else, he added, it would create confusion among consumers who might delay vehicle purchases in anticipation of better prices.

- DEEPAK PATEL

India and the UK signed their FTA in July this year.

Under the deal, India will gradually reduce import duties on cars made in the UK — which currently range between 70 per cent and 110 per cent — to 10 per cent over five years, but only for a limited number of vehicles each year.

In the first year, duties on large petrol or diesel cars are expected to fall to around 30 per cent, declining further to 10 per cent by year five.