Indian government officials stated that India and Britain are poised to seal a free trade deal next week. This deal is long-awaited, according to The Economic Times.
Easing British exports of whisky, cars and food, this will also grant India textiles and electric vehicles duty-free access to the UK market.
After three years of stop-start negotiations, in May, both countries announced the conclusion of trade negotiations. It aims to increase bilateral trade, remove trade barriers and allow duty-free entry of goods.
The countries are now preparing to sign the agreement. One of the Indian officials said that the announcement could coincide with Indian Prime Minister Narendra Modi's expected visit to London next week.
The official added that the trade pact will take effect in about a year. It needs to be approved by the British parliament and India's federal cabinet, the official adds.
"The trade agreement offers a win-win for both countries," the second Indian source said, adding that Indian consumers would gain access to Scotch whisky at lower prices, as import tariffs will drop to 75% from 150% immediately, and further to 40% over the next decade.
On cars, India will cut duties to 10% from 100% under a quota system that will be gradually liberalised, the sources said. In return, Indian manufacturers are expected to gain access to the UK market for electric and hybrid vehicles, also under a quota regime, they added.
India's trade ministry has said 99% of Indian exports to Britain would benefit from zero duty under the deal, including textiles, while Britain will see reductions on 90% of its tariff lines.
By 2030, India's middle class is projected to reach 60 million people and could rise to a quarter of a billion by 2050, according to British government estimates. India's overall import demand is forecast to grow by 144% in real terms to 1.4 trillion pounds ($1.88 trillion) by 2035, compared to 2021.
