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Below the Input on India-UK FTA agreement by Gyanendra Tripathi, Partner & Leader (West), Indirect Tax at BDO India 

The India-UK FTA would be a catalyst to increase bilateral trade between India and the UK. While the UK is eliminating tariffs on 99% of the overall tariff lines, India is reciprocating by offering duty reductions in 90% of the tariff lines, with 85% of such tariff lines becoming duty-free within a decade. India has agreed to halve duty rates on whiskey and gin to 75% now, before reducing to 40% by year 10, and a reduction in duty on automotives from 100% to 10% under a quota.

At the same time, the press release on highlights of the FTA also mentions the removal of non-tariff barriers and significant commitments being secured by India on digitally delivered services for Indian service suppliers. The industry would now need to study the fine print of the FTA and lay out a roadmap on how best to derive the benefit of this FTA.

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