Latest news with #India-U.K.FreeTradeAgreement
The Hindu
30-06-2025
- Automotive
- The Hindu
U.K. PM Keir Starmer claims tariffs slashed as trade deal with U.S. takes effect
British car and aerospace manufacturers will benefit from slashed tariffs when exporting to America as the U.K.-U.S. trade deal comes into effect from Monday (June 30, 2025), Prime Minister Keir Starmer said as he welcomed the 'historic' pact. Downing Street claims the U.K. is the only country to have secured such a deal with U.S. President Donald Trump, reducing car export tariffs from 27.5% to 10% and the aerospace sector seeing the removal of 10% tariffs on goods such as engines and aircraft parts. 'Our historic trade deal with the United States delivers for British businesses and protects U.K. jobs,' said Mr. Starmer. 'From today, our world-class automotive and aerospace industries will see tariffs slashed, safeguarding key industries that are vital to our economy. We will always act in the national interest – backing British businesses and workers, delivering on our Plan for Change,' he said. The deal, announced last month and discussed further between Mr. Starmer and Mr. Trump at the G7 Summit in Canada earlier this month, is built around a quota system which the U.K. government claims is 'as simple, fair and effective as possible'. The deal came soon after the India-U.K. Free Trade Agreement (FTA) was announced on May 6, which is now going through its legal document scrubbing to be formally signed by next month to boost bilateral trade by an estimated GBP 25.5 billion annually in the next decade. "This is a clear example of our Plan for Change in action: cutting costs for businesses, speeding up delivery of trade benefits, and helping UK industries thrive in a challenging global environment,' said U.K. Business and Trade Secretary Jonathan Reynolds, leading on the trade talks with the U.S. and India. 'We agreed this deal with the U.S. to protect jobs and support growth in some of our most vital sectors – and today, we're delivering on that promise for the UK's world-class automotive and aerospace industries," he said. "British car manufacturers can now export to the U.S. at a significantly reduced 10% tariff rate – down from 27.5% – and aerospace goods will see 10% tariffs removed, saving sectors hundreds of millions each year and safeguarding thousands of jobs,' the Minister added. The government reiterated that the deal makes the U.K. the only country to be exempt from the global tariff of 50% on steel and aluminium. As the Prime Minister and President Trump confirmed, the trade teams will continue to work towards 0% tariffs on core steel products as agreed, the U.K.'s Department for Business and Trade (DBT) stressed. British industry welcomed the deal, with the aerospace group ADS saying the sector 'hugely appreciated' relaxed tariffs on goods for it to continue to focus on 'innovation and excellence'. New trading agreement between the U.K. and U.S 'The implementation of the new trading agreement between the U.K. and U.S. is good news for US customers and a huge relief for the UK automotive companies that export to this critically important market,' said Mike Hawes, Chief Executive of the UK's Society of Motor Manufacturers and Traders (SMMT) – representing the country's auto companies including Indian-owned Tata Motors Jaguar Land Rover (JLR) brands. 'It immediately slashes the punitive tariffs that brought the U.S. export market to a standstill and threatened the viability of some of the most famous names in British manufacturing. Securing the deal – the first and, so far, only automotive deal in place with the administration – is a diplomatic coup and provides a foundation on which to grow trade in the future,' said Mr. Hawes. The U.K. government is set to update Parliament on the implementation of quotas on U.S. beef and ethanol, as part of the commitment made to the U.S. under the trade deal.
The Hindu
23-05-2025
- Automotive
- The Hindu
MINI India announces price protection for 3-Door Cooper S
MINI India, a part of BMW Group India, has announced a price protection assurance programme for the MINI 3-Door Cooper S model produced at its Oxford plant in the U.K. in case of a duty cut under the India-U.K. Free Trade Agreement (FTA). Vikram Pawah, President and CEO, BMW Group India said, 'With the price protection assurance programme for MINI 3- Door Cooper S, MINI is staying a step ahead and ensuring that customers can receive the full benefit of any major price reductions resulting from anticipated duty cuts.' 'They can buy their favourite MINI today and do not have to wait longer to make the purchase decision. This bold decision reflects the brand's exceptional focus on customer centricity, trust and best interest of the MINI community,' he said. The price protection programme is valid on the MINI 3-Door Cooper S which is available in India as a Completely Built-up Unit (CBU). The model is produced at MINI Plant Oxford in United Kingdom. 'Under the limited period offer, cars bought from now onwards will be covered till the next 180 days. If price is reduced during this period, the respective dealership will refund the differential amount between the net invoiced price and the new ex-showroom price back to the customer,' BMW Group India said in a statement. 'The current ex-showroom price of the MINI 3-Door Cooper S starts at ₹44,90,000. The offer can be availed at any authorised MINI dealership in India,' it added. The other model of the new MINI family – the all-electric MINI Countryman – is not covered under the offer. It is available in India as a Completely Built-up Unit and is produced at BMW Group Plant Leipzig in Germany.
The Hindu
06-05-2025
- Business
- The Hindu
Industry upbeat as India-U.K. ink FTA
Amid the trade war and global uncertainties, the India-U.K. Free Trade agreement, signed on Tuesday, would create large opportunities for Indian companies, significantly boost bilateral trade, attract strategic investments, and further integrate Indian businesses into the global value chain, said trade organisations and industry leaders. The sectors which are set to benefit include textiles and apparel, leather and footwear, gems and jewellery, pharmaceuticals, agriculture and processed foods to name a few. 'The timely agreement will help advance a comprehensive strategic partnership between India and the U.K., steering bilateral trade towards the ambitious target of USD 100 billion by 2030,' said CII President Sanjiv Puri. 'This agreement comes at a pivotal time when India is positioning itself as a resilient and reliable trade partner in a rapidly evolving global landscape,' said the Federation of Indian Export Organisations (FIEO) president S.C. Ralhan. Sudarshan Venu, MD, TVS Motor Company said, 'It creates large opportunities for Indian companies like ours to expand further and access new markets. Our British brand Norton will launch later this year and this agreement will help us scale faster and leverage common supply chains.' Harsha Vardhan Agarwal, President, FICCI said, 'The India-U.K. Free Trade Agreement is not just a trade pact—it's a bridge to shared prosperity. It brings a new momentum to sectors like FMCG, healthcare, and innovation-driven enterprises. Mayank Jain, Partner, Khaitan & Co., said, 'This landmark agreement marks a significant step in reducing trade barriers between the world's fifth and sixth largest economies.' Boost for textiles The India-U.K. Free Trade Agreement will strengthen the labour-intensive Indian textile and apparel sector, positioning India as a major textile hub, according to garment exporters. K.M. Subramanian, president of the Tiruppur Exporters Association, said almost 9% of Indian knitwear exports are to the U.K. and this is likely to touch 20% after the FTA. According to A. Sakthivel, vice chairman of the Apparel Export Promotion Council (AEPC), by unlocking new export opportunities, reducing trade barriers, and enabling greater access to the U.K. market, this agreement promises to empower exporters across the textile value chain. AEPC chairman Sudhir Sekhri said the FTA will open up huge opportunities for garment exporters. (With inputs from TCA Sharad Raghavan in New Delhi)
The Hindu
06-05-2025
- Business
- The Hindu
India-U.K. FTA, a significant step toward fostering trade, investment and job creation in both nations: Nasscom
Bengaluru Nasscom, the tech industry apex body, has welcomed the India-U.K. Free Trade Agreement (FTA), terming the agreement a testament to the deepening economic partnership between the two global innovation hubs, also calling it a significant step toward fostering trade, investment, and job creation in both nations. 'The agreement would catalyse bilateral trade in services, foster cross-border innovation, and generate high-quality employment opportunities for Indian talent,' Nasscom said, adding the enhanced ease of doing business and regulatory transparency under this FTA would further strengthen India's position as a trusted partner to the world. ''We are thankful to both governments for the inclusion of the Double Contribution Convention, which exempts Indian workers temporarily employed in the U.K. and their employers from paying social security contributions for a period of three years,'' the industry body said in a statement on Tuesday (May 6, 2025). By eliminating this double contribution burden, the agreement directly addressed a long-standing challenge faced by Indian Technology companies and other service providers operating in the U.K., it said. 'We will be studying the details of the agreement, including easing mobility for professionals that will enhance business competitiveness, resulting in a win-win partnership,'' it further said. According to Nasscom, this exemption will not only enhance the access of Indian talent in the U.K. but also create new opportunities for skilled professionals, enabling them to contribute meaningfully to the U.K.'s dynamic economy. The provision reflected the recognition of India's strength in delivering high-quality services globally and reinforces the importance of mobility for Indian professionals in driving innovation and growth, it said. 'The FTA's focus on digitally delivered services, professional services, and financial services aligned with the aspirations of the Indian technology sector,' Nasscom said. 'It opens up avenues for deeper collaboration in emerging areas such as artificial intelligence, cybersecurity, and digital transformation, while also creating a conducive environment for startups and innovators.'
