Indo-U.K. FTA: quota for cars to be based on engine capacity, price

• The lower import tariff of 10% on the auto sector will include different bands for internal combustion engine (ICE) and electric vehicles.

• Import duties on automobiles will be lowered over 10-15 years, with “futuristic cars” and “low-cost” cars excluded.

• Electronic certificates of origin will be shared between the two countries, easing business for Indian exports.

• “Sensitive agricultural products” and sensitive industrial products like precious metals, smartphones, and optical fibres are excluded from the deal.

• Medical devices duty will only be reduced from the sixth year of the deal.

• The Double Contribution Convention, an agreement finalised along with the FTA, will save temporary workers in the U.K. and their employers about ₹4,000 crore annually.

• The Union government has signed terms of reference with Chile for a Comprehensive Economic Partnership Agreement (CEPA).