India may give UK access to PV market, with riders

India has proposed a tariff rate quota (TRQ) that will impose a ceiling on the number of PVs (under 100,000 units) to be allowed to be imported on a concessional tariff,

- SHREYA NANDI

TRADE TALKS: NOT ON THE SAME PAGE

Of the 26 policy areas or chapters, 13 have been substantially closed for talks

• The 10th round of negotiations scheduled in India from June 5-9
• In the 'goods' chapter, the UK's push for lower tariffs on whisky and automobiles has remained a prickly issue in the talks

Even as India and the UK attempt to iron out the creases under the proposed trade deal, New Delhi is treading with caution. While it is ready to give the UK access to its passenger vehicle (PV) market, it also wants to place a cap on the number of units that will be allowed to enter India once the deal comes to fruition.

India has proposed a tariff rate quota (TRQ) that will impose a ceiling on the number of PVs (under 100,000 units) to be allowed to be imported on a concessional tariff.

The import duty for these PV units (under TRQ) will be eliminated in a phased manner over five years, two people aware of the matter but not directly involved in the negotiations informed Business Standard.

Taking into consideration that domestic PV sales were 3.89 million in 2022-23, the proposed limit could be less than 3 per cent.