Latest news with #UK-manufactured
Hans India
6 days ago
- Business
- Hans India
From Whisky To British Cars: What gets cheaper
London: As both nations sign the trade deal, it is essential to know what will become cheaper. The FTA will cut tariffs on most products traded between India and the United Kingdom. Items such as the world-famous Scotch Whisky, British-made cars like Rolls Royce, cosmetics, and medical devices are among many other products that will become cheaper in India. The deal also specifies that the average tariff on UK products will drop to 3 per cent, compared to their current 15 per cent level. UK-manufactured soft drinks, cosmetics, chocolates, biscuits, automobiles (cars), and medical devices will become cheaper and easier for British companies to sell in the Indian market. The import tariffs for UK-made cars are currently at over 100 per cent tariff rates, which will be reduced to 10 per cent under a quota system. Major focus has also been placed on the tariffs imposed on the world-famous Scotch Whisky, as the import duty rates have been cut to 75 per cent compared to their current 150 per cent rates. Tariffs will also be reduced on key Indian products, such as textiles, leather, gems and jewellery, auto components and engines, furniture, sports goods, chemicals, and machinery. Zero tariffs will be applied to the import of gold, diamond jewellery, leather goods, garments, and home textiles. The UK will also cut import duties on Indian processed foods, basmati rice, shrimp, spices, and tea to allow Indian exporters to access the UK markets. What will UK gain? The United Kingdom will gain from Indian companies expanding their operations in the UK, and UK firms will now have access to the Indian markets for operations. Britain aims to create over 2,200 jobs. The workers in the European nation will also witness a collective wage hike of up to £2.2 billion each year and will likely see cheaper prices and more choice on clothes, shoes, and food products. The pact will 'increase UK exports to India by nearly 60% in the long run – this is equivalent to an additional £15.7 billion of UK exports to India when applied to projections of future trade in 2040', said the UK government in an official statement.
New Indian Express
6 days ago
- Business
- New Indian Express
India–UK Free Trade Agreement: Sector and product-wise impacts
CHENNAI: India and the United Kingdom are set to sign a landmark Free Trade Agreement (FTA) on July 24, 2025, during Prime Minister Narendra Modi's official visit to London. This is India's first major bilateral trade deal with a developed economy in over a decade. The agreement follows nearly three years of negotiations and is expected to come into force within a year, pending approvals from the UK Parliament and India's Union Cabinet. Here's a list of important tariff reductions and concessions on goods and services agreed upon by both countries: Key Tariff Changes Alcoholic beverages: Import duties on Scotch whisky and gin will drop from 150% to 75% immediately, and to 40% over the next 10 years. Automobiles: Tariffs on UK-manufactured cars, which currently exceed 100%, will be cut to 10% under a quota-based system. Other goods: India will reduce or eliminate tariffs on products like cosmetics, salmon, chocolates, biscuits, and medical devices. India Gains Almost 99% of Indian goods will get duty-free access to the UK market. This includes products from sectors like textiles, footwear, gems and jewellery, auto components, machinery, chemicals, sports goods, furniture, and pharmaceuticals. Textiles and apparel: Current UK tariffs of 8–16% will be eliminated. This is expected to boost exports from key textile hubs like Tiruppur, Surat, and Ludhiana. Beneficiary companies will be Welspun India, Arvind Ltd. Footwear: Zero-duty access will benefit manufacturers in Agra, Kanpur, and Chennai. This will benefit companies like Bata India and Relaxo. Automobiles and electric vehicles: Indian EV and hybrid carmakers like Tata Motors and Mahindra Electric will benefit from reduced import tariffs and preferential quotas. Gems and jewellery: Removal of UK duties (up to 16%) will aid exporters, particularly from Gujarat and Maharashtra. Auto components and engineering goods: Zero tariffs to benefit companies like Bharat Forge. Pharmaceuticals and medical devices: Improved access for Indian pharma companies to the UK market. Furniture, toys, sports goods, chemicals, and machinery: Reduced or zero tariffs will provide an export boost to these sectors. UK Gains Alcohol and luxury goods: UK-based firms like Diageo (Scotch whisky) and luxury carmakers such as Aston Martin and Jaguar Land Rover (owned by Tata Motors) will gain improved market access in India. Automobiles: British luxury vehicles will enter India under a lower-tariff quota system. Professional access to UK: Indian professionals including yoga instructors, chefs, musicians, and other service providers will have easier short-term entry to the UK. Social security relief: Indian professionals on temporary assignments in the UK will be exempt from paying social security contributions for up to three years, with estimated annual savings of ₹4,000 crore. Government procurement: UK companies can bid on Indian federal government tenders worth over ₹200 crore in non-sensitive sectors. This opens access to around ₹4.09 lakh crore in annual tenders. Macroeconomic Projections According global trade experts, this India–UK FTA marks a significant milestone in bilateral trade, offering major tariff concessions, enhanced market access, and new opportunities in services and public procurement. And it is expected to boost exports, attract investment, and strengthen economic ties between the two countries across strategic sectors. UK government estimates the FTA will increase its GDP by £4.8 billion annually. Indian exports to the UK are expected to double by 2030. Currently, over 1,000 Indian firms operate in the UK, employing over 1 lakh people and investing about $20 billion. The UK has so far invested close to $36 billion in India, making it the sixth-largest foreign investor.
Powys County Times
17-07-2025
- Automotive
- Powys County Times
Jaguar Land Rover cutting up to 500 management jobs in UK
Luxury car maker Jaguar Land Rover is axing up to 500 management jobs in the UK amid a slump in sales and trade tariff woes. The Tata-owned firm said around 1.5% of its UK workforce of more than 33,000 would be affected by the job cuts, which are going as part of a voluntary redundancy programme for managers in the UK. Jaguar Land Rover (JLR) declined to say which sites would be affected, but said the role reductions were spread across the firm's management team. The group has sites in locations including Solihull and Wolverhampton in the West Midlands, Halewood in Merseyside, Gaydon in Warwickshire and Whitley in Coventry. It comes after JLR revealed last week that retail sales plunged 15.1% in the three months to June after a temporary pause in exports to the US and the planned wind-down of older Jaguar models, while wholesale sales dropped by 10.7%. The company said the significant fall in sales was partly driven by the pause in shipments to the US in April after US President Donald Trump's administration introduced new tariff plans. In April, the US government said it would launch an additional 25% tariff on car imports into the US, in an effort to encourage more car production within the country. However, the US and UK have since agreed a deal which would see a lower 10% tariff applied to the first 100,000 UK-manufactured cars imported into the US each year. UK cars imported to the US beyond this threshold will however face a 27.5% tariff. A spokesperson for JLR said: 'JLR regularly offers eligible employees voluntary redundancy programmes. 'Through this limited UK voluntary redundancy programme for managers, JLR is aligning its leadership workforce for the business's current and future needs. 'We are grateful to the Government for delivering at speed the new UK-US trade deal, which gives us the confidence to invest £3.5 billion per annum to realise our strategy which is delivering.' The Government had hailed the recent UK-US trade deal for helping protect thousands of British jobs in affected sectors. JLR halted new shipments to the US in April but restarted exports in early May amid hopes that a trade deal for the sector would be struck. The car firm saw wholesale sales in North America drop by 12.2% year-on-year after the pause. But wholesale sales in the UK were also heavily down – tumbling 25.5% in the second quarter – after the planned wind-down of older Jaguar models. Jaguar stopped selling new cars in the UK late last year as it shifts its production to new electric models, which are set to go on sale in 2026.
ITV News
17-07-2025
- Automotive
- ITV News
Jaguar Land Rover to cut up to 500 UK jobs
(JLR) has announced it's cutting up to 500 UK-based jobs amid pressure on sales due to trade tariffs. The automobile company, which has a plant in Castle Bromwich in Solihull, said it would be axing management jobs as part of a voluntary redundancy scheme. The Tata-owned firm said around 1.5% of its UK workforce would be affected by the job cuts. A spokesperson for JLR said: "As part of normal business practice, we regularly offer eligible employees the opportunity to leave JLR through limited voluntary redundancy programmes." It comes after JLR revealed last week that retail sales plunged 15.1% in the three months to June after a temporary pause in exports to the US and the planned wind-down of older Jaguar models. The company said the significant fall in sales was partly driven by the pause in shipments to the US in April after US President Donald Trump's administration introduced new tariff plans. In April, the US government said it would launch an additional 25% tariff on car imports into the US, in an effort to encourage more car production within the country. However, the US and UK have since agreed a deal which would see a lower 10% tariff applied to the first 100,000 UK-manufactured cars imported into the US each year. UK cars imported to the US beyond this threshold will however face a 27.5% tariff. JLR halted new shipments to the US in April but restarted exports in early May amid hopes that a trade deal for the sector would be struck. Wholesale sales in the UK were also heavily down, by 25.5% in the second quarter, after the planned wind-down of older Jaguar models. Jaguar stopped selling new cars in the UK late last year as it shifts its production to new electric models, which are set to go on sale in 2026.
South Wales Argus
17-07-2025
- Automotive
- South Wales Argus
Jaguar Land Rover cutting up to 500 management jobs in UK
The Tata-owned firm said around 1.5% of its UK workforce would be affected by the job cuts, which are going as part of a voluntary redundancy programme for managers in the UK. A spokesperson for Jaguar Land Rover (JLR) said: 'As part of normal business practice, we regularly offer eligible employees the opportunity to leave JLR through limited voluntary redundancy programmes.' It comes after JLR revealed last week that retail sales plunged 15.1% in the three months to June after a temporary pause in exports to the US and the planned wind-down of older Jaguar models. The company said the significant fall in sales was partly driven by the pause in shipments to the US in April after US President Donald Trump's administration introduced new tariff plans. In April, the US government said it would launch an additional 25% tariff on car imports into the US, in an effort to encourage more car production within the country. However, the US and UK have since agreed a deal which would see a lower 10% tariff applied to the first 100,000 UK-manufactured cars imported into the US each year. JLR halted new shipments to the US in April but restarted exports in early May (Alamy/PA) UK cars imported to the US beyond this threshold will however face a 27.5% tariff. JLR halted new shipments to the US in April but restarted exports in early May amid hopes that a trade deal for the sector would be struck. The car firm saw wholesale sales in North America drop by 12.2% year-on-year after the pause. But wholesale sales in the UK were also heavily down – tumbling 25.5% in the second quarter – after the planned wind-down of older Jaguar models. Jaguar stopped selling new cars in the UK late last year as it shifts its production to new electric models, which are set to go on sale in 2026.
