London: As both nations sign the trade deal, it is essential to know what will become cheaper. The FTA will cut tariffs on most products traded between India and the United Kingdom. Items such as the world-famous Scotch Whisky, British-made cars like Rolls Royce, cosmetics, and medical devices are among many other products that will become cheaper in India.

The deal also specifies that the average tariff on UK products will drop to 3 per cent, compared to their current 15 per cent level.

UK-manufactured soft drinks, cosmetics, chocolates, biscuits, automobiles (cars), and medical devices will become cheaper and easier for British companies to sell in the Indian market.

The import tariffs for UK-made cars are currently at over 100 per cent tariff rates, which will be reduced to 10 per cent under a quota system.

Major focus has also been placed on the tariffs imposed on the world-famous Scotch Whisky, as the import duty rates have been cut to 75 per cent compared to their current 150 per cent rates.

Tariffs will also be reduced on key Indian products, such as textiles, leather, gems and jewellery, auto components and engines, furniture, sports goods, chemicals, and machinery.

Zero tariffs will be applied to the import of gold, diamond jewellery, leather goods, garments, and home textiles. The UK will also cut import duties on Indian processed foods, basmati rice, shrimp, spices, and tea to allow Indian exporters to access the UK markets.

What will UK gain?

The United Kingdom will gain from Indian companies expanding their operations in the UK, and UK firms will now have access to the Indian markets for operations.

Britain aims to create over 2,200 jobs. The workers in the European nation will also witness a collective wage hike of up to £2.2 billion each year and will likely see cheaper prices and more choice on clothes, shoes, and food products.

The pact will “increase UK exports to India by nearly 60% in the long run – this is equivalent to an additional £15.7 billion of UK exports to India when applied to projections of future trade in 2040”, said the UK government in an official statement.