FTA: According to an official, the UK has asked for customs duty breaks on electric vehicle exports to India as part of the proposed free trade agreement (FTA), which is currently being negotiated.
But no decision has been made on the matter thus far, according to the official.
The official stated that there is a need to offer discounts on a certain number of cars each year.
International players are taking notice of India’s rapidly expanding electric vehicle market. By 2035, the UK plans to phase out internal combustion engine (ICE) vehicles, and exports drive the country’s auto industry.
Experts claim that Europe is the UK’s top export market for automobiles, and the country is trying to increase the variety of goods it ships.
The official, who wished to remain anonymous, stated, “The UK has sought concessions on electric vehicles from India as part of the ongoing free trade agreement negotiations.”
The Economic Survey 2022–2023 projects that by 2030, the Indian market for electric vehicles will reach one crore units sold annually and generate five crore direct and indirect jobs.
Industry estimates place India’s total EV sales in 2022 at about 10 lakh units.
The Indian government is encouraging the home production of EVs by offering financial incentives in response to the growing demand for these vehicles. It is also luring US giant Tesla to establish a facility in India.
The government has launched production-linked incentives (PLI) programs with an expenditure of Rs 18,100 crore for advanced chemistry cell (ACC) battery storage and Rs 26,058 crore for the auto, auto-components, and drone industries.
When it comes to electric cars for passengers, Tata Motors is the industry leader in India. The company currently offers three EV models: Tiago EV, Tigor EV, and the Nexon EV range.
The free trade agreement is currently being negotiated, and both parties are debating somewhat complicated topics.
Thirteen rounds of negotiations have been finished so far.
The social security agreement, autos, medical equipment, professional mobility, origin regulations, intellectual property rights (IPRs), duty breaks on electric cars, scotch whiskey, lamb, and chocolates, and the loosening of regulations in the banking and insurance industries are among the topics being negotiated.
The UK’s political developments caused the deadline for the conclusion of negotiations for a free-trade agreement (FTA) between India and the UK to be missed. The FTA talks were initiated in January 2022.
The agreement is divided into 26 chapters covering services, investments, intellectual property rights, and goods.
