India and UK trade agreement reduces tariffs on autos and food

India and the UK have launched a new trade agreement, which came into force on 15 July. The deal cuts or removes taxes on goods traded between the two countries. Indian car makers will pay lower tariffs when they export vehicles to the UK. India will also reduce its own import taxes on foreign passenger cars, but this will happen slowly over fifteen years. Farm products and processed foods will benefit from lower or zero tariffs too. The agreement helps Indian exporters compete on price against suppliers from countries without a similar deal. It also encourages Indian businesses to sell to new markets, rather than relying on the same destinations they have always used.