India's Strategic Move in FTA with the UK

In a significant development, India has decided to exclude British wines from any import duty concessions under the newly concluded free trade agreement (FTA) with the United Kingdom. This decision comes as part of India's strategy to protect its domestic market and avoid pressure from the European Union for similar concessions.

Limited Relief for UK Beer

While the FTA offers some relief on UK beer, the concessions are limited. This move is seen as a balancing act by India to foster trade relations without compromising its agricultural sector's interests.

Exclusions and Concessions

The agreement also excludes several sensitive agricultural products from tariff reductions, including dairy products, apples, cheese, oats, and animal and vegetable oils. On the other hand, India will gradually reduce duties on UK whiskey and gin, marking a significant step towards enhancing bilateral trade.

Future Implications

The FTA between India and the UK, concluded after negotiations that began in 2022, is expected to take over 15 months to come into effect. Both countries are currently undergoing legal vetting of the agreement, with the text likely to be made public by August-September.