India has not imposed any tariff reductions on smartphones, optical fibres, diamonds, or silver for the United Kingdom under the Free Trade Agreement.
India withholds duty concessions for select products under free trade agreement with the UK
Within the recently concluded Free Trade Agreement (FTA) between India and the United Kingdom, certain sensitive industrial goods have been barred from receiving any duty reductions. The affected items include diamond, silver, smartphones, and optical fibers, as well as other products such as plastics, base stations, and television camera tubes. This exclusion is intended to shield key domestic sectors from immediate competition spurred by tariff benefits[3][5].
In terms of automotive trade, while the FTA contemplates the reduction of tariffs on automotive imports from over 100% to 10% under specific quotas, high-value items like Tata Motors and Jaguar Land Rover are set to benefit[1]. However, India has imposed quotas and restrictions for petrol, diesel, and electric vehicles, with only limited custom duties available for a certain number of electric vehicle units[3][5]. There will be no out-of-quota reductions for electric vehicles, while internal combustion engine (ICE) vehicles will experience gradual duty cuts outside the quotas to allow Indian industries more time to adapt[3][5].
During the 2023-24 fiscal year, India recorded a favorable trade surplus with the UK, with merchandise exports valued at USD 12.92 billion, and imports amounting to USD 8.41 billion[1].
The FTA between India and the UK seeks to minimize tariffs on a multitude of goods. Nevertheless, India has purposefully excluded certain sensitive industrial items like diamond, silver, smartphones, and optical fibers from any duty relief to safeguard domestic industries in those sectors[3][5].
[1] [Source Link for PTI report][3] [Source Link for details on India’s exclusion list for tariff benefits under the India-UK FTA][5] [Source Link for import duty information on various products under the India-UK FTA]
In the context of the free trade agreement between India and the UK, key domestic sectors such as diamond, silver, and smartphone manufacturing will continue to receive protection from duty reductions, as these industries have been deliberately excluded from any tariff benefits to maintain their stability. Furthermore, in the realm of advertising and marketing, this move could potentially open up opportunities for domestic businesses to capitalize on the finance sector and the news industry, as the exclusion of these products may provide a competitive edge for them within the UK market.
