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Time of India
2 days ago
- Business
- Time of India
India-UK FTA: Rs 4,060 crore hit in first year; customs revenue loss to widen by 10th year
NEW DELHI: India could lose around Rs 4,060 crore in customs revenue in the first year of its newly signed free trade agreement (FTA) with the United Kingdom, according to estimates by the Global Trade Research Initiative (GTRI). The amount shows the customs duties India will not collect because of lower or removed tariffs on many British products entering the country. The estimate is based on current import volumes and tariff structures. The trade deal was signed last week and involves phased tariff eliminations that will increase India's annual revenue loss to Rs 6,345 crore by the tenth year of implementation. That is equivalent to around 574 million British pounds, calculated using trade data for financial year 2025. 'Based on these factors, India's revenue foregone in the first year of the agreement is estimated at Rs 4,060 crore,' GTRI founder Ajay Srivastava was quoted as saying to news agency PTI. India imported goods worth $8.6 billion from the UK in 2024-25. A large share of these are industrial products that currently attract an average customs duty of 9.2 per cent. GTRI said India has agreed to eliminate tariffs on 64 per cent of the value of imports from the UK as soon as the agreement is implemented. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pirates Climb Aboard Cargo Ship - Watch What The Captain Did Next Tips and Tricks Undo In total, India will remove tariffs on 85 per cent of tariff lines and reduce duties on another 5 per cent of product categories. However, most agricultural goods have been excluded from the cuts, except items like whisky and gin, which face much higher average tariffs of 64.3 per cent. In turn, the UK imported $14.5 billion worth of Indian goods in the last fiscal year. 'This translates to an estimated annual revenue loss of British Pound 375 million (or $474 million or Rs 3,884 crore) for the UK, again based on FY2025 trade data. As Indian exports to the UK expand, the fiscal impact is likely to grow over time,' GTRI noted. Under the Comprehensive Economic and Trade Agreement (CETA), the UK has committed to removing tariffs on 99 per cent of Indian imports. The agreement still requires parliamentary approval in the UK, and its full implementation can take up to a year. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
2 days ago
- Business
- The Hindu
India's revenue foregone in first year of trade pact with U.K. estimated at ₹4,060 cr: GTRI
India is expected to forego customs revenue of ₹4,060 crore in the first year of the free trade agreement with the United Kingdom, as tariffs are reduced or eliminated on a wide range of goods, think tank Global Trade Research Initiative (GTRI) said on Monday (July 28, 2025). The calculation is based on the current import figures from the United Kingdom. By the tenth year, it said, as tariff elimination phases-in more broadly, the annual loss is projected to rise to $6,345 crore or around British Pound 574 million, based on FY2025 trade volumes. The India-U.K. free trade agreement, which was signed on July 24, will lead to a loss of customs revenue for both the countries, as tariffs are reduced or eliminated on a wide range of goods, GTRI added. India imported $8.6 billion worth of goods from the U.K. in 2024-25. Industrial products make up the bulk of these imports and face a weighted average tariff of 9.2 per cent. Most agricultural products, subject to much higher average tariffs of 64.3 per cent, were excluded from tariff cuts, except for items like whisky and gin. It said that India has committed to eliminating tariffs on 64 per cent of the value of imports from the U.K. immediately as the implantation starts. Overall, India will eliminate tariffs on 85 per cent of tariff lines and reduce tariff on 5 per cent of tariff lines or product categories. "Based on these factors, India's revenue foregone in the first year of the agreement is estimated at ₹4,060 crore," GTRI Founder Ajay Srivastava said. He added that the U.K. imported USD 14.5 billion worth of goods from India in the last fiscal year, with a weighted average import tariff of 3.3 per cent. Under the comprehensive economic and trade agreement (CETA), the U.K. has agreed to eliminate tariffs on 99 per cent of Indian imports. "This translates to an estimated annual revenue loss of British Pound 375 million (or $474 million or ₹3,884 crore) for the U.K., again based on FY2025 trade data. As Indian exports to the U.K. expand, the fiscal impact is likely to grow over time," it said. The implementation of the pact may take about a year as it requires approval from the U.K. Parliament.
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Business Standard
5 days ago
- Business
- Business Standard
US Dollar weakens, Euro and Pound surge: What it means for your money
The US Dollar is losing steam, setting the stage for a global currency realignment led by a resurgent Euro and British Pound. According to Emkay Wealth Management's latest currency report, persistent uncertainty over US interest rate cuts and tariff policies is eroding dollar strength—paving the way for other major currencies to gain ground. Why the Dollar is losing steam Two key factors are eroding the dollar's strength: Lingering uncertainty around US interest rate cuts Speculation of new trade tariffs, which could reduce global investor appetite for dollar-denominated assets. While the Federal Reserve continues to tread carefully, markets are already pricing in future rate cuts. As a result, the Dollar Index — which measures the dollar against a basket of major currencies — has softened. Euro and Pound Rally: Backed by Bold Moves In contrast, the Euro and British Pound have emerged as the strongest gainers. The European Central Bank (ECB) and Bank of England (BOE) executed early and aggressive rate cuts, boosting investor confidence. The EU's recent uptick in defense spending, from 2% to a striking 6% of GDP (announced at the Munich Summit), also signaled economic resilience and geopolitical assertiveness. These developments have made the Euro and Pound more attractive for global funds — pulling capital away from the US. "Leading the rally are the Euro and British Pound, which have gained ground thanks to timely and aggressive rate cuts by the European Central Bank (ECB) and the Bank of England (BOE). These moves, combined with signs of economic recovery in the EU and a bold increase in defense spending—from 2% to 6% of GDP as declared at the Munich Summit—have boosted market confidence in the sustained strength of these currencies," noted the report. Where Does the Indian Rupee Stand? The Indian Rupee (INR) has shown short-term strength, pulling back from a low of ₹87/USD. This rebound is fueled by improved trade data and hopes of foreign capital inflows, particularly once US rates begin to ease. However, Emkay warns that the Rupee's long-term trajectory remains weak, unless structural reforms and persistent capital inflows materialize. "In the Asian context, the Indian Rupee has shown short-term strength, recovering from a recent high of ₹87. While this rebound is partly supported by improved trade data, its durability hinges on the return of foreign capital—expected once US interest rates begin to ease. Still, the broader trend for the Rupee remains tilted towards long-term weakness," the report said. As the year unfolds, global markets will continue to track the Fed's signals and geopolitical shifts. But one thing is becoming increasingly apparent: the Dollar may no longer be the sole anchor in the global currency narrative of 2025. What This Means for Indian Investors If you're wondering how this affects your wallet or investment strategy, here's the breakdown: Investing Overseas? Now may be a good time to look at Euro or Pound-denominated assets. With these currencies strengthening and US dollar assets softening, diversifying beyond dollar-based investments could yield better returns in 2025. Planning a Euro Trip? Bad news: A stronger Euro and Pound may make international travel to Europe or the UK more expensive in rupee terms. Booking early or locking in rates can help mitigate some costs. What to Watch in the Second Half of 2025 US Fed policy signals on inflation and tariffs Emerging market capital flows, especially into India Geopolitical shifts in Europe and Asia
Time of India
5 days ago
- Automotive
- Time of India
Duty concessions to UK only on large petrol, diesel vehicles, high-priced EVs: Official
India has provided duty concessions to the UK auto exporters only on large petrol and diesel vehicles and high-priced EVs, while protecting sensitive segments of the domestic automotive industry especially mid and small cars and low-priced EVs under the trade pact, an official said. No concessions are given to electric, hybrid, and hydrogen-powered vehicles in the first five years of the agreement. The pact, officially called Comprehensive Economic and Trade Agreement (CETA), was signed in London on Thursday in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer. As per the pact, tariffs on automotive imports will go from about 110 per cent at present to 10 per cent under quotas on both sides. The offered quota and duty reduction is more on the large engine capacity categories (above 3,000 cc petrol / 2,500 cc diesel). "It ensures the domestic sector sufficient time to expand, innovate, and enhance global competitiveness in our area of strength in small (up to 1,500 cc) and mid segment (1,500-3,000 cc petrol / up to 2,500 cc diesel," the official said adding the duty reduction to 10 per cent will be done in over five years with quota. Out of quota duty reduction is 50 per cent in over 10 years. "The concession framework is designed to provide market access to UK exporters mostly on large engine size ICE (internal combustion engine) vehicles and high price range EVs while simultaneously protecting sensitive segments of India's automotive industry (mid and small size engine capacity ICE vehicles and mid and low price range EVs)," the official said. As per the details of the agreement, the number of vehicles from ICE engines shall get deducted by the number of EV vehicles getting concessions in sixth year onwards to maintain the total quota volume of 37,000 units at the end of 15 years of duty concession. For vehicles priced below British Pound 40,000 (CIF), no market access is provided, ensuring complete protection for the mass-market EV segment in which India seeks global leadership. Market access in EV is given mostly in high-priced vehicles priced above British Pound 80,000 (CIF). "India has secured market access to the tune of four times of its concession given to UK on EV in UK market," the government official said adding India has extended a structured and balanced market access offer to the UK in the automobile sector under the trade agreement. India's commitment is calibrated, phased, and development-oriented quota based liberalization strategy. This offer pertains exclusively to Completely Built Units (CBUs) of passenger vehicles encompassing Internal Combustion Engine (ICE) vehicles as well as electric, hybrid, and hydrogen-powered vehicles.
The Print
6 days ago
- Automotive
- The Print
Duty concessions to UK only on large petrol, diesel vehicles, high-priced EVs: Official
The pact, officially called Comprehensive Economic and Trade Agreement (CETA), was signed in London on Thursday in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer. No concessions are given to electric, hybrid, and hydrogen-powered vehicles in the first five years of the agreement. New Delhi, Jul 24 (PTI) India has provided duty concessions to the UK auto exporters only on large petrol and diesel vehicles and high-priced EVs, while protecting sensitive segments of the domestic automotive industry especially mid and small cars and low-priced EVs under the trade pact, an official said. As per the pact, tariffs on automotive imports will go from about 110 per cent at present to 10 per cent under quotas on both sides. The offered quota and duty reduction is more on the large engine capacity categories (above 3,000 cc petrol / 2,500 cc diesel). 'It ensures the domestic sector sufficient time to expand, innovate, and enhance global competitiveness in our area of strength in small (up to 1,500 cc) and mid segment (1,500–3,000 cc petrol / up to 2,500 cc diesel,' the official said adding the duty reduction to 10 per cent will be done in over five years with quota. Out of quota duty reduction is 50 per cent in over 10 years. 'The concession framework is designed to provide market access to UK exporters mostly on large engine size ICE (internal combustion engine) vehicles and high price range EVs while simultaneously protecting sensitive segments of India's automotive industry (mid and small size engine capacity ICE vehicles and mid and low price range EVs),' the official said. As per the details of the agreement, the number of vehicles from ICE engines shall get deducted by the number of EV vehicles getting concessions in sixth year onwards to maintain the total quota volume of 37,000 units at the end of 15 years of duty concession. For vehicles priced below British Pound 40,000 (CIF), no market access is provided, ensuring complete protection for the mass-market EV segment in which India seeks global leadership. Market access in EV is given mostly in high-priced vehicles priced above British Pound 80,000 (CIF). 'India has secured market access to the tune of four times of its concession given to UK on EV in UK market,' the government official said adding India has extended a structured and balanced market access offer to the UK in the automobile sector under the trade agreement. India's commitment is calibrated, phased, and development-oriented quota based liberalization strategy. This offer pertains exclusively to Completely Built Units (CBUs) of passenger vehicles encompassing Internal Combustion Engine (ICE) vehicles as well as electric, hybrid, and hydrogen-powered vehicles. PTI RR CS RR ANU ANU This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
