New Delhi, May 11 – India has excluded British wines from import duty concessions and has allowed only limited benefits on beer under the recently concluded Free Trade Agreement (FTA) with the United Kingdom, a senior official confirmed on Sunday.The agreement, announced on May 6, includes several sensitive agricultural products in the exclusion list. These include dairy products, apples, cheese, oats, and animal and vegetable oils, all of which will continue to attract existing import duties.
“Wine is on the exclusion list, along with several other agricultural products in the trade pact. We are also offering only a limited duty concession on British beer,” the official stated.
Key Highlights of the India-UK FTA
While British wines face no tariff relief, the FTA does offer gradual import duty reductions on UK’s Scotch whiskey and gin. The current 150 percent duty will be lowered to 75 percent immediately, and further reduced to 40 percent by the tenth year of the agreement.India’s decision to exclude wine from duty cuts is considered strategic. The European Union (EU), a significant player in the global wine market, is currently in advanced stages of FTA negotiations with India. Any concessions to the UK on wine could have led to pressure from the EU to extend similar benefits.
No Major Impact on Indian Whiskey Market
Addressing concerns from Indian whiskey producers, the official noted that the impact of reduced Scotch whiskey tariffs will be minimal due to the phased nature of the cuts and currently low import volumes.Timeline for Implementation
Although negotiations began in 2022 and both nations have declared the talks concluded, the FTA is not expected to come into force for over 15 months. Currently, legal vetting of the text is underway.“Maybe by August-September, the text would be made public,” said another official involved in the process.
Following legal review, the agreement will be signed and undergo a year-long ratification process in the UK Parliament. Only after completion of this process will the FTA be officially implemented.
The India-UK FTA promises to reshape trade ties, especially in sectors like alcoholic beverages, automobiles, and textiles, while carefully shielding India’s sensitive agricultural sectors from external competition.