India – ambitious tariff reductions
Senior officials from the United Kingdom and India have begun discussions on the potential Free Trade Agreement between the two countries.
The first meeting, which took place in New Delhi on Thursday, January 13, was the first in the series. The conversations will continue at a high level this week, making this the shortest time in history for a trade agreement to move from launch to serious discussions.
One of the most significant items on the agenda of this potentially game-changing agreement will be the long-awaited reduction in, and ideally the eventual removal of, the current 150 percent tariff on India’s importation of high-grade Scotch whiskies, which has resulted in a significant increase in demand.
Already, India is the world’s largest consumer of whisky, but the country’s populace has been denied access to the greatest goods accessible to them. Because of the high tariff, the most costly and unique single malts from the most prestigious Scottish distilleries have been priced out of the market entirely. That tariff, which is a legacy of Britain’s membership in the European Union, has only been made possible by the successful completion of the Brexit talks, which have now been completed.
“The New Year presents a wonderful chance to accomplish an ambitious tariff reduction in an early harvest arrangement that has the potential to increase Scotch whiskey exports to India by £1 billion over the next five years,” said Mark Kent, Chief Executive of the Scotch Whisky Association.
By 2035, the agreement has the potential to enhance UK exports by as much as £28 billion per year, while also resulting in pay rises of up to £3 billion throughout the nation. Already, 95,000 employment are supported by Indian-owned businesses in the United Kingdom, a number that is expected to rise once the agreement takes effect.
