20,000 cars imported by India from UK to get cheaper in first year of FTA
As per the trade agreement, Completely Built Units (CBU) ICE cars whose engine size is more than 3000 cc (petrol) and more than 2500 cc (diesel) will see a reduction in duty from 110% to 50% in the first year when the FTA comes into effect. This will eventually come down to 25% in the 2nd year and progressively to 10% by the end of the 5th year. Quota size from this category will grow from 10,000 units in Year 1 to peak at 19,000 units in the fifth year. Following the 5th year, it will come down annually to stagnate at 7,500 units from the 15th year onwards.
Imported PVs, whose engine size ranges from 1500 cc (petrol and diesel) to 2500 cc (diesel) / 3000 cc (petrol), will see a reduction in duty from 66% to 50% in the first year of the FTA. This will progressively come down to 10% by the 5th year. Quota size from this category will grow from 5,000 units in Year 1 to peak at 9,000 units in the fifth year. Following the 5th year, it will come down annually to 3,750 units from Year 15 onwards. Reduction in duty and their quota size has been kept similar for vehicles whose engine size is up to 1,500 cc.
The out-of-quota customs duty rate at which made-in-UK cars will enter India has also been reduced.
There are no concessions given to electric, hybrid, and hydrogen-powered vehicles in the first 5 years. Green vehicles whose cost, insurance, and freight (CIF) is less than £40,000 have been kept out of the deal. Tariffs for green vehicles having CIF between £40,000 and £80,000 will come down to 50% from 110% from the 6th year of the FTA. However, quota size has been limited to just 400 units initially and will be progressively increased to 2000 units from the 15th year onwards. For cars having a CIF of more than £80,000, duty has been reduced from 110% to 40% from the 6th year. Quota size has been initially kept at 4,000 units which will grow to 20,000 units from the 15th year onwards. Duty on both categories will go down to 10% from Year 10.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
3 hours ago
- Time of India
A dozen global CEOs place big bets on India amid accelerating growth
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Apple chief executive Tim Cook said growth in India accelerated in the June quarter with the iPhone maker reporting record revenue driven by double-digit expansion in smartphones, Macs and services. It's not just Apple that's upbeat on India. A dozen global chiefs of large companies such as Coca-Cola, Unilever , Reckitt Benckiser, PepsiCo, Nestle, Mondelez, Whirlpool, LG, Domino's, AO Smith and FedEx have renewed their bet on the country after a challenging phase. The CEOs were speaking on earnings calls for the last said new Apple retail stores—four of them—will open in India later this year, adding that most of the iPhones sold in the US were assembled in India in the last quarter amid uncertainty fuelled by US President Donald Trump's tariff talk. Apple currently has two stores in the country, in Mumbai and across companies said there is a visible revival of demand in India after months of slowing sales. They are tapping into this recovery with more investments, distribution, equipment and innovation. 'We've seen some really strong volume growth in India and China,' said Kris Licht, global chief executive officer of the British Reckitt Benckiser Group Plc, maker of Dettol soap and Lizol disinfectant cleaner. 'Of course, these economies may not be immune to shocks that could roll through the global economy. But we expect sustained volume growth here and we're scaling up large innovation.'India is a key growth market for global companies given that various large categories are still underserved. Companies said they are increasing their focus on India with the revival of demand visible after unseasonal rains and geopolitical tensions weighed down sales since came on top of a continued overall slowdown as inflation-hit consumers cut back on discretionary spending over the past two years. Research firm Numerator (formerly Kantar) said in a report last week that demand for groceries, and household and personal care slowed to 3.9% by volume year-on-year in the June quarter, impacted by unseasonal rains.'In the case of India, it's never going to be a straight line and indeed Q2 was not. But we are very bullish on India overall and optimistic about recovery,' said James Quincey, global chief executive of Coca-Cola. 'We've got a strong plan from a marketing and innovation point of view.… with some reenergised focus.'Coca-Cola's unit case volume declined 5% in the Asia-Pacific region in the quarter. It attributed this to a decline in India due to the early onset of the monsoon and geopolitical tensions 'after a strong start to the year', Quincey said. Rival PepsiCo had also reported a decline in its beverage business in India for the 12-week period ended June 14 on account of early rain, but the beverage and snacks maker's global chief executive Ramon Laguarta expressed confidence in India. 'We will adapt our price pack architecture to offer consumers more value and convenience,' he said. The summer months between March and July generally contribute over half of annual sales for soft drink Bhatia, partner, consumer products and retail sector, EY-Parthenon, said: 'Urban growth has been lagging largely because wage inflation was much lower over the last few years. But now, given the closing gap between wage inflation and overall inflation, we expect urban growth rates to hold steady.'Bhatia added that urban growth is expected to improve over the next four-six quarters and get back to 7-8%. 'While there are some consumption headwinds such as layoffs in the IT sector, at the same time, there is change in skill sets that are emerging and I think new jobs will come up,' he refrigerator and washing machine manufacturer Whirlpool Corp's chief financial officer James W Peters said sales in India are lagging initial expectations due to the geopolitical trouble and an unusually cool summer selling season in the second quarter. Whirlpool is in the midst of selling a majority stake in its Indian operations to 'large thirdparty investors'. The company expects this to close by the year end, the management for Dove soap maker Unilever, the past month has seen growth slowing. Apart from that, it's also dealt with the sudden exits of its global and India chiefs. Unilever's global new chief executive officer Fernando Fernandez said Thursday said it would invest disproportionately in two of its largest markets, the US and India, 'to ensure it gets benefits of the parent's scale, advantage and portfolio footprint'. Another category that's seeing green shoots is quick service restaurants. Despite the ongoing slowdown amid intensified competition, they still see India as a better performer than many global Pizza Inc said its growth in Asia last quarter was driven by India. Global chief financial officer Sandeep Reddy said it expects to see 'significant growth' in both India and China. 'I think Jubilant (which has franchisee rights for India) talked about their fiscal year 250 stores in India,' he the case of Apple, industry executives said the new stores are expected to be unveiled next month ahead of the festive season as the company launches new models of the iPhone and other devices. The four new stores are to open in Bengaluru, Mumbai, Pune and Canalys has estimated Indiamanufactured smartphones account for 44% of the total imported to the US in the June quarter, up from 13% in the year-ago period. Industry tracker Counterpoint Research said in a report this week that the Indian smartphone market's wholesale value rose 18% year-on-year in the April-June period, reaching its highest-ever quarterly value. It said the iPhone 16 emerged as the most-shipped device in the period, highlighting strong consumer demand.
Mint
3 hours ago
- Mint
Centre scrambles to revamp export plan as US tariffs hit Indian goods, favour ASEAN rivals
New Delhi: Faced with steep tariffs imposed by the US government, the Centre is huddling with export promotion councils and manufacturers to find a way to rework the country's exports strategy, two government officials aware of the development said. The development comes on the back of a deadlock in bilateral trade agreement (BTA) negotiations between India and the US, which the two countries have been grappling with since June, as reported by Mint on 11 June. The new plan involves diversifying into markets such as the UK, with which India recently signed a free trade agreement (FTA), and the European Union (EU), where negotiations are in the final stage and a deal could be signed before the end of the year, the officials cited above said on the condition of anonymity. India's plan would also focus on sector-specific challenges and policy measures to support exports, including exploring new markets with the help of Indian missions overseas, the officials said. The government sees strong export potential in regions like Saudi Arabia, France, Vietnam, the Netherlands, Mexico, and Ethiopia, among other countries. The review will additionally focus on India's growing competitiveness gap with Bangladesh and with ASEAN countries such as Vietnam and Indonesia, which have received significant tariff relief under the latest US executive order. While India faces a 25% duty — just 1 percentage point down from 26% in the 2 April notification — Vietnam's tariffs have been reduced from 46% to 20%, Indonesia's from 32% to 19%, and Bangladesh's from 37% to 20%, giving these exporters a clear edge in the US market. 'Sectoral discussions will have special attention to cases like Vietnam, which imports Indian shrimp, processes it, and re-exports it to the US under a more favourable tariff, and Indonesia, which enjoys a lower duty on electronics exports," one of the officials said. 'Bangladesh, a major garments exporter, now benefits from a lower 20% rate compared to the 25% levied on Indian textiles." The meetings will also examine the implications of the new US rules on transshipment, which impose a 40% punitive duty on goods rerouted to evade tariffs, this person said. Queries sent to the commerce ministry, which is spearheading the consultations with industry, remained unanswered till press time. The tariffs explained On Thursday, the US imposed a 25% tariff on the value of all goods shipped from India that will come into effect on 7 August. To be sure, Indian goods will also attract existing MFN (most-favoured nation) duties, which average 3% but differ across sectors. Goods that are already on their way to the US and will reach ports there before 5 October will have to pay 10% duty. Further, certain sectors are exempted from the new 25% tariff, but they still have to pay the MFN duty. 'As of now, exports worth around $30 billion — comprising sectors like petrochemicals ($4 billion), pharmaceuticals ($15 billion), and electronic goods ($11 billion) — would not be impacted, as these are exempt from the additional duty," said the first among the two officials mentioned above. The first official added that sectors that are of concern are textiles (exports worth $10.91 billion), engineering goods ($19.16 billion), agriculture ($2.53 billion), gems and jewellery ($9.94 billion), leather ($948.47 million), marine products ($2.68 billion), and plastics ($1.92 billion). Notably, India exported goods worth $86.5 billion to the US in FY25, which is 20% of the country's total merchandise exports of $433.56 billion in FY25. Industry reactions According to the Global Trade Research Initiative (GTRI), a Delhi-based think tank, India's goods exports to the US may decline by 30% to $60.6 billion in FY2026. 'This order is more than just a tariff measure — it's a pressure tactic," said Ajay Srivastava, founder of GTRI, adding that the US is using access to its markets through tariffs as leverage to advance its geopolitical goals and extract one-sided trade concessions. 'Countries like China have retained exemptions on critical goods such as pharmaceuticals, semiconductors, and energy. But India has been singled out for harsher treatment, with no product-level exemptions whatsoever," Srivastava added. Tariffs on China have not been revised under the latest order and will continue at 30%. Vipul Shah, former chairman of the Gem & Jewellery Export Promotion Council (GJEPC), said the government should consider incentivising exporters, especially those heavily dependent on the US market, as the new tariffs are a significant blow to sectors like gems and jewellery. 'Immediate support is crucial to help these industries navigate the shock," he said. However, Ashwani Mahajan of the Swadeshi Jagran Manch, which opposes a one-sided trade deal, said India should not be overly worried about higher US tariffs, as the country is not as export-dependent as China. 'Work is already underway to diversify and explore new markets," he said. Mithileshwar Thakur, secretary general of the Apparel Export Promotion Council (AEPC), said the Indian apparel industry has an exposure of about 33% to the US market. He added that the FTA with the UK and ongoing FTA negotiations with the EU together can offer significant opportunities for the Indian apparel industry, and partly offset losses in US business. But, to tide over the current crisis, the government should offer incentive in the immediate term to the exporting community to stay afloat in the US market. 'It is unfortunate that India has been hit with the highest tariffs. This will definitely impact our competitiveness. We are in a wait-and-watch mode to see whether prices rise in the US market and if American buyers can absorb the increased costs or not," said Pankaj Chadha, chairman of Engineering Export Promotion Council (EEPC). Exploring newer markets For engineering goods, the government is focusing on expanding exports to new target markets such as Sao Tome, Macao, Georgia, Croatia, Guinea-Bissau, Belize, Azerbaijan, Myanmar, Lithuania, Norway, Somalia, and Greece. Currently, key export destinations for Indian engineering goods include the U.S., UAE, Saudi Arabia, Germany, and Italy. The Netherlands, South Korea, Belgium, Mexico, Japan, and Kuwait are also seen as promising markets. For pharmaceuticals, new destinations identified include Montenegro, South Sudan, Chad, Comoros, Brunei, Latvia, Ireland, Sweden, Haiti, and Ethiopia, while Greece is listed as a promising market. Traditional export markets for Indian drugs are— US, UK, Netherlands, South Africa, and Brazil. In electronics, the government has listed Sao Tome, Montenegro, Cayman Islands, St. Vincent, Mongolia, El Salvador, Turkmenistan, Honduras, Bahrain, Somalia, Puerto Rico, Vietnam, and Sweden as new export destinations. Russia, Mexico, and Turkey are marked as promising markets. For agricultural and processed food products, the focus will be on Nigeria, Switzerland, Lithuania, Slovenia, Mexico, Sweden, Portugal, Cameroon, Djibouti, Latvia, Egypt, Senegal, Canada, Argentina, and Brazil.
Time of India
3 hours ago
- Time of India
New York Plane Crash: One pilot killed, another injured after small aircraft crashes onto road in Rochester
At least one of two men on board lost his life after a single-engine plane crashed onto a road on Friday (August 1, 2025) in the city of Rochester in New York State, police said, according to news agency AP. The other pilot sustained injuries. Speaking about the plane crash, police in the western New York city said that the Piper J-5 Cub Cruiser landed upside down along a roadway in the city's Maplewood Park area just after 1:30 p.m. There were no vehicles nearby at the time. According to police, one victim was pronounced dead at the scene. The other was taken to a hospital with non-life-threatening injuries, police said. Their names were not immediately released. The crash was under investigation by the National Transportation Safety Board and Federal Aviation Administration. It was not immediately known where the flight originated or where it was headed. The crash site is about 5 miles north of the Rochester airport. Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing Finance Data Analytics Cybersecurity Data Science Project Management MCA Artificial Intelligence Technology healthcare Operations Management Healthcare Management Others CXO Degree Data Science Leadership PGDM others Product Management Design Thinking MBA Public Policy Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details Meanwhile, in another incident that occurred on Wednesday evening (July 30, 2025), a US Navy F-35 fighter jet crashed near Naval Air Station Lemoore in California. It was the latest in a series of incidents involving the multi-role stealth aircraft. The pilot ejected safely, and the cause of the crash was under investigation. This comes just days after a British F-35B fighter jet, stranded for over a month in India, was finally flown out after extensive repair efforts. Live Events According to a Navy press statement, the F-35 crashed at approximately 6:30 pm near NAS Lemoore in central California. The aircraft was assigned to Strike Fighter Squadron VF-125, known as the 'Rough Raiders,' which is responsible for training F-35 pilots. The pilot safely ejected and survived the incident.
