India-UK FTA: Rs 4,060 crore hit in first year; customs revenue loss to widen by 10th year
The amount shows the customs duties India will not collect because of lower or removed tariffs on many British products entering the country.
The estimate is based on current import volumes and tariff structures.
The trade deal was signed last week and involves phased tariff eliminations that will increase India's annual revenue loss to Rs 6,345 crore by the tenth year of implementation. That is equivalent to around 574 million British pounds, calculated using trade data for financial year 2025.
'Based on these factors, India's revenue foregone in the first year of the agreement is estimated at Rs 4,060 crore,' GTRI founder Ajay Srivastava was quoted as saying to news agency PTI.
India imported goods worth $8.6 billion from the UK in 2024-25. A large share of these are industrial products that currently attract an average customs duty of 9.2 per cent. GTRI said India has agreed to eliminate tariffs on 64 per cent of the value of imports from the UK as soon as the agreement is implemented.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Pirates Climb Aboard Cargo Ship - Watch What The Captain Did Next
Tips and Tricks
Undo
In total, India will remove tariffs on 85 per cent of tariff lines and reduce duties on another 5 per cent of product categories.
However, most agricultural goods have been excluded from the cuts, except items like whisky and gin, which face much higher average tariffs of 64.3 per cent.
In turn, the UK imported $14.5 billion worth of Indian goods in the last fiscal year. 'This translates to an estimated annual revenue loss of British Pound 375 million (or $474 million or Rs 3,884 crore) for the UK, again based on FY2025 trade data.
As Indian exports to the UK expand, the fiscal impact is likely to grow over time,' GTRI noted.
Under the Comprehensive Economic and Trade Agreement (CETA), the UK has committed to removing tariffs on 99 per cent of Indian imports. The agreement still requires parliamentary approval in the UK, and its full implementation can take up to a year.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
5 minutes ago
- India.com
Despite Trump's 25% Tariff, How India Still Beats Pakistan, Bangladesh On Trade Balance
New Delhi: Even as U.S. tariffs on Indian goods climb to 25 percent, the numbers tell a more layered story. Despite the blow, India still holds a stronger position in trade dynamics than some of its closest neighbours. In 2024, Indian products entering the American market faced an average effective tariff of 17.4 percent. That is lower than the 19.9 percent slapped on Bangladeshi goods, the 18.1 percent faced by Pakistan and Sri Lanka's 19.2 percent. These figures come from a recent analysis by Moneycontrol that measured the effective duties levied by the United States on major South Asian exporters. U.S. President Donald Trump, who reimposed tough trade penalties last month, had pointed fingers at India in a strongly worded post on July 30. 'Remember, while India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world. They have the most strenuous and obnoxious non-monetary trade barriers of any country… INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST,' he wrote on Truth Social. However, data on what economists call the tariff differential, the gap between what a country pays in U.S. tariffs versus what it charges on American imports, suggests India's trade relationship with Washington remains more balanced than many others in the region. India's tariff differential currently stands at 11.3 percentage points. That is significantly narrower than Bangladesh's 17.2-point gap or Pakistan's 13.6 points. Another regional exporter, Vietnam faces a 13-point spread. Bangladesh's position appears the most lopsided: its exports are hit by the highest U.S. tariffs, but it barely charges American goods in return. Meanwhile, India maintains an average 6.1 percent tariff on U.S. imports, more than Bangladesh but less than others, offering a cushion against the recent spike from Washington. Neighbouring Asian countries such as Thailand and the Philippines fare slightly better in terms of tariff balance, with gaps at 6.4 and 9.8 points respectively. But their trade mix is different, heavily skewed towards electronics and intermediate goods. India's exports to the United States, on the other hand, lean heavily on pharmaceuticals, garments, jewellery and consumer products. These sectors are more vulnerable to tariff hikes. While India's trade ties with Washington remain under strain, the data reflects that it may still be navigating the turbulence more stably than its regional peers.
Economic Times
5 minutes ago
- Economic Times
Rs 3.2 lakh monthly income, no home yet: Is a Rs 32 lakh car too much?
Synopsis A Reddit post sparked debate after a financially stable young couple earning Rs 3.2 lakh monthly considered buying a Rs 32 lakh luxury car, despite not yet owning a home. While they had solid savings and investments, many users advised against prioritizing a depreciating asset over real estate or long-term goals like family planning. Cautioning about hidden costs, poor road conditions, and limited tax benefits, commenters suggested aligning the car budget with income benchmarks or opting for a more modest vehicle, recommending instead to focus on wealth-building and future security. Couple Plans Rs 32 Lakh Car Purchase Without a House As rising incomes reshape the lifestyle aspirations of young professionals in India, big-ticket purchases like high-end cars are increasingly seen as attainable. However, these decisions often raise difficult questions about long-term planning and financial prudence. Is it wise to splurge on a luxury car before owning a home or securing other essentials? This dilemma recently took centre stage on Reddit, where a financially stable couple questioned whether purchasing a Rs 32 lakh car would be a sound decision at their stage in the post, a 30-year-old man shared that he and his wife, both working in the IT consulting sector, bring home a combined Rs 3.2 lakh per month. Their monthly expenses, which include vacations, family support, and daily needs, average around Rs 1.7 lakh. Financially, they appear well-prepared, with Rs 15 lakh in savings, Rs 22 lakh in mutual funds, and Rs 45 lakh in provident funds. They also maintain a Rs 30 lakh health insurance policy. Although they currently rent and do not own property, they hope to buy a home within the next decade. With no children yet, but plans to start a family next year, the poster explained that he was drawn to a car priced at Rs 31–32 lakh on-road, and is considering making the purchase next year after accumulating more savings for a higher down response from Reddit users was largely cautious. Many highlighted the risk of investing in a depreciating asset like a car over appreciating assets like real estate. Some urged the user to prioritise home ownership, pointing out that a property not only builds equity but also gains value over time. One commenter even stated plainly that buying a Rs 32 lakh car without a house should be ruled out offered practical benchmarks, suggesting that car purchases should ideally not exceed six months' worth of take-home salary—in this case, approximately Rs 19–20 lakh. Anything significantly beyond that was seen as financially risky, especially considering job market uncertainties and future obligations like raising a users weighed in on the question of whether to buy the car outright or through a loan. Some argued in favour of financing, saying that with vehicle loan interest rates generally ranging from 7–12%, the remaining funds could be invested in mutual funds, which historically offer better long-term returns. However, others pushed back, cautioning that salaried individuals don't benefit from the same tax deductions on vehicle loan interest as businesses do, and investment gains are still the purchase price, commenters also brought attention to the ongoing costs of owning a premium vehicle. Higher insurance premiums, servicing charges, and repair expenses were flagged as important considerations. Several users also pointed out the poor road conditions in many Indian cities and the potential for frequent vehicle wear and tear—factors that could further diminish the value of an expensive respondents suggested buying a smaller, more affordable car under Rs 10–12 lakh and investing the remaining money into long-term goals such as a child's higher education or eventual home interiors. ( Originally published on Aug 02, 2025 )
Time of India
19 minutes ago
- Time of India
Retired TCS employee duped of Rs 3 crore by share trading fraudsters
Mumbai: A 58-year-old retired TCS executive lodged a complaint after being duped of almost Rs 3 crore from cyber fraudsters in an online scam. Impersonating officials of a reputed share trading platform, the fraudsters lured him twice and duped him of Rs 2.6 crore. The victim, a resident of Navroz Bagh in Lalbaug, detailed how he was lured through deceptive advertisements on Facebook and tricked over a span of two months. According to the complaint, the victim, who dabbled in stock trading for the past five years, came across an advertisement for "Kuvera Finance" while browsing Facebook on June 10. On clicking the link, he was added to a WhatsApp group named "K21 - Kuvera Appha Club - Learn & Grow Your Wealth." The group was allegedly moderated by Rutuja Lad, who claimed to be a manager at Kuvera Finance, and Neelabh Sanyal, who posed as an investment advisor. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai The fraudsters convinced the victim to open a "Kuvera Fast Trade Account" through a link they provided. Under their guidance, he began transferring funds into various bank accounts, which included names like Sweet and Salt, Yash Traders, Axiopay Infotech Pvt. Ltd, and Sahil Enterprises, among others. Over a period of weeks, he was duped into transferring Rs 56.2 lakh under the pretext of stock investments that were displayed as virtual profits on fake trading apps. In a parallel operation, the victim encountered another fraudulent scheme through a Facebook advertisement for UTI AMC. This led him to a WhatsApp group named "UTI Capital Storm," where individuals identified as Sanya Kapoor and Imtaiazur Rahman introduced themselves as managers of UTI Mutual Fund. They used similar tactics, guiding the victim to invest by sending funds to accounts under names like Prudent Services Ltd, A.K. Traders, Harish Kumar, Sri Kalai Enterprise, Brightview Technologies, Hasan Creation, and Prince Corporation. Between June 16 and July 29, the victim transferred an additional Rs 2 crore to these accounts. The fraudsters repeatedly showed inflated profits on virtual dashboards but refused to allow withdrawals, citing fabricated "processing fees." When the victim attempted to withdraw his investments on July 29, the accused demanded a 5% payment on the invested sum. Sensing foul play, the victim attempted to contact the accused, but they became unresponsive. Realising he was cheated, the victim immediately filed complaints with the 1930 Cyber Helpline, an FIR was lodged against Rutuja Lad, Neelabh Sanyal, Sanya Kapoor, and Imtaiazur Rahman—and lists multiple bank account holders used as conduits for the scam. These accounts spanned across several banks. The complainant has submitted screenshots of WhatsApp chats, payment details, and other evidence to assist in the investigation. Authorities suspect that the scam is part of a larger pan-India racket involving mule accounts and international operatives. A senior officer from the cyber cell said, "We are tracing the digital footprint of the accused and are in touch with the respective banks to freeze the accounts. Preliminary investigations indicate the involvement of a well-organised cyber syndicate."
