According to sources within the United Kingdom’s gvernment, India must greatly expand its markets for goods and services in order for the India-UK Free Trade Agreement (FTA) to be effective. India still has one of the highest imports tax rates in the world, thus the UK makes the point that the country’s high tariffs on imports need to be lowered. In order to reach a fair arrangement, the UK wants India to lower its tariffs even as it maintains its openness.
United Kingdom’s Uncertainty about Import Taxes
India has one of the highest import tax rates in the world, thus its tariff policy is cause for concern. The average duty on goods imported into the UK from India is 4.2%, whilst the median tariff on products imported into India from the UK is 14.6%. Creating a more equal trading partnership requires closing this gap.
The Secretary of Commerce Highlights Fair Deal
In the FTA talks with the United Kingdom, Commerce Secretary Sunil Barthwal highlights how important it is for India to protect its interests and make significant progress. He emphasizes how crucial it is to make sure the agreement is fair, helping India economically and safeguarding the interests of farmers and products covered according to the production-linked incentive (PLI) program.
Reluctance to Make Significant Concessions
Significant concessions to Indian workers, such as liberalisation of employment visas or a social security agreement, seem hesitantly presented by the UK. A social security agreement might be able to save Indian professionals employed temporarily in the UK a significant amount of money on required pension contributions.
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