India’s revenue foregone in first year of trade pact with U.K. estimated at ₹4,060 cr: GTRI

Thought Tank Global Trade Research Initiative (GTRI) said on Monday, July 28, in the first year of the Free Trade Agreement with India, India is expected to give up 4,060 Crore customs revenue in the first year of the Free Trade Agreement with the United Kingdom.

The calculation is based on existing import figures from the United Kingdom.

Until the tenth year, the stages of eliminating tariffs are broadcast in a wider way, the annual loss is expected to rise to $ 6,345 or around 574 million on the basis of 6025 FY trade volume.

GTRI added that the Indian-Free Trade Agreement, which was signed on July 24, has been reduced or eliminated in a wide variety of tariffs, it will lead to loss of customs income for both countries.

India imported $ 8.6 billion from England in 2024-25.

Industrial products constitute the majority of this imports and the weighted average tariff is 9.2 percent.

Most agricultural products have been removed from tariff cuts, except for products such as whiskey and gin, subject to 64.3 percent higher average tariffs.

India, when the implantation began immediately 64 percent of the import value of the UK is committed to eliminating tariffs, he said.

In general, it will eliminate tariffs in 85 percent of the Indian tariff lines and reduce the tariff in 5 percent of tariff lines or product categories.

“Based on these factors, India’s income is estimated as 4,060 Crore,” Based on these factors, “Based on these factors, Ajay Srivastava said. He said.

Authorized, Britain has imported 14.5 billion dollars of goods from India in the last financial year and the weighted average import tariff is 3.3 percent, he added.

In accordance with the comprehensive economic and trade agreement (CETA), Britain agreed to eliminate tariffs on 99 percent of Indian imports.

“This is based on 2025 FY trade data for the UK, and for the UK, 375 million (or $ 474 million or ₹ 3,884 crore) becomes an annual loss of income. As the export to India expands, the financial impact is likely to grow over time.”

The implementation of the PACT may take about one year as it requires approval from the British Parliament.