New Delhi: India does not provide any tariffs on British wines under the Free Trade Agreement (FTA) between the two countries announced on May 6, and only provides limited import duties on British beer between the two countries.
India and the United Kingdom announced the conclusion of the Free Trade Agreement on May 6, which would make British Scotch whiskey and cars cheaper in India while reducing the responsibilities of Indian imports such as clothing and leather products. “In terms of wine, it is excluded from the list along with several other agricultural products in the trade agreement. We also offer only a limited liability concession for UK beer,” the official said.
Under the agreement, India will reduce tariffs on British whiskey and gin from 150% to 75% in the tenth year of the deal and further down to 40%. It is important to offer tax benefits to the UK without wine, as the EU is a major player in this segment. Any reduction in import taxes on the UK will lead to pressure on the EU on India to provide similar layoffs on its wines. The FTA talks between India and the European Union (EU) are at a high level.
The official also said the concerns of Indian whisky players also said that under the agreement, the import tax granted to Scotch whisky will not significantly affect the domestic market, as the reduction will be gradually implemented within 10 years and imports are also low. Although the two countries announced the end of the talks that began in 2022, it will take 15 months for the FTA to take effect.
