India-UK Free Commerce Settlement: GTRI estimates ₹4,060 crore income loss for India in first 12 months
The India-U.Okay. free commerce settlement, which was signed on July 24, will result in a lack of customs income for each the nations, as tariffs are lowered or eradicated on a variety of products, GTRI mentioned. File
| Photograph Credit score: The Hindu
India is predicted to forego customs income of ₹4,060 crore within the first 12 months of the free commerce settlement with the UK, as tariffs are lowered or eradicated on a variety of products, suppose tank International Commerce Analysis Initiative (GTRI) mentioned on Monday (July 28, 2025).
The calculation is predicated on the present import figures from the UK.
By the tenth 12 months, it mentioned, as tariff elimination phases-in extra broadly, the annual loss is projected to rise to $6,345 crore or round British Pound 574 million, based mostly on FY2025 commerce volumes.
The India-U.Okay. free commerce settlement, which was signed on July 24, will result in a lack of customs income for each the nations, as tariffs are lowered or eradicated on a variety of products, GTRI added.
India imported $8.6 billion value of products from the U.Okay. in 2024-25.
Industrial merchandise make up the majority of those imports and face a weighted common tariff of 9.2 per cent.
Most agricultural merchandise, topic to a lot increased common tariffs of 64.3 per cent, had been excluded from tariff cuts, apart from objects like whisky and gin.
It mentioned that India has dedicated to eliminating tariffs on 64 per cent of the worth of imports from the U.Okay. instantly because the implantation begins.
General, India will remove tariffs on 85 per cent of tariff traces and cut back tariff on 5 per cent of tariff traces or product classes.
“Primarily based on these components, India’s income foregone within the first 12 months of the settlement is estimated at ₹4,060 crore,” GTRI Founder Ajay Srivastava mentioned.
He added that the U.Okay. imported USD 14.5 billion value of products from India within the final fiscal 12 months, with a weighted common import tariff of three.3 per cent.
Underneath the excellent financial and commerce settlement (CETA), the U.Okay. has agreed to remove tariffs on 99 per cent of Indian imports.
“This interprets to an estimated annual income lack of British Pound 375 million (or $474 million or ₹3,884 crore) for the U.Okay., once more based mostly on FY2025 commerce information. As Indian exports to the U.Okay. increase, the fiscal affect is more likely to develop over time,” it mentioned.
The implementation of the pact could take a couple of 12 months because it requires approval from the U.Okay. Parliament.
Printed – July 28, 2025 02:15 pm IST
