This is an archive article published on May 9, 2025
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India–UK trade deal text expected in 3 months; No MIP on UK Whisky: Official
To protect the domestic industry, the import restrictions on diesel and petrol vehicles are linked to engine capacity, and in the case of EVs, to prices, an official clarified.
This FTA aligns well with a rapidly growing Indian economy expanding at over 6 per cent per year in a world economy growing at half that speed.
The official text of the India–UK free trade agreement is expected to be released in three months, as the legal scrubbing is currently underway, a government official stated on Thursday, adding that the agreement will be implemented following approval by the UK Parliament, which could take about an year.
The official clarified that India has not included a Minimum Import Price (MIP) provision for British alcoholic beverages in the free trade agreement, despite requests from domestic liquor manufacturers. This is significant as India plans to reduce import duties on UK whisky and gin from 150 per cent to 75 per cent, and further to 40 per cent by the tenth year of the deal.
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On automobiles, the official clarified that India has incorporated adequate safeguards in the agreement to protect sensitive sectors. Import duties on vehicles will be reduced over a period of 10 to 15 years, with concessions on petrol and diesel engine vehicles limited to a predefined quota, the official said. The quota for imports of British electric vehicles (EVs) at a concessional customs duty rate is restricted to a few thousand units.
To protect the domestic industry, the import restrictions on diesel and petrol vehicles are linked to engine capacity, and in the case of EVs, to prices, an official clarified.
“For cars, duty will be reduced over a period of 10 to 15 years, and the volume of imports will be very small. We have not allowed futuristic cars (EVs) or low-cost cars. We have implemented several protection measures,” the official said, adding that India’s car industry is projected to reach a record 5 million units, and by the time the duty is reduced, it may reach 10 million units per year.
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“There is no out-of-quota duty reduction for EVs. The sensitivity related to EVs has been addressed. The out-of-quota duty on internal combustion engine vehicles will be reduced gradually over a longer period, thereby helping our industries absorb the incremental increase of imports from the UK,” the official added.
Meanwhile, the Indian alcoholic beverage industry has expressed dissatisfaction with the deal, having advocated for a level playing field through the inclusion of an MIP to curb dumping and under-invoicing by foreign companies.
This FTA aligns well with a rapidly growing Indian economy expanding at over 6 per cent per year in a world economy growing at half that speed. 
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