Boost for Auto Sector… Green Signal for UK Car Imports

The Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom will come into effect from the 15th of next month. As part of the deal, India will allow imports of up to 3.78 lakh passenger cars with internal combustion engines from the UK over the first 15 years. Import duties on UK vehicles will be reduced from around 110 percent to 10 percent, subject to annual quotas.

The agreement also includes significant provisions in the automotive sector. India will permit imports of 20,000 to 37,000 UK cars annually in different engine categories, while tariff concessions will vary based on vehicle segments. From the sixth year onwards, Indian companies will be able to export electric, hybrid, and hydrogen vehicles to the UK without duties, with quotas gradually increasing to 88,000 units by the 15th year.

In addition, a major social security agreement will benefit 90–95 percent of Indian professionals working in the UK. The Double Contribution Convention will exempt employees and companies from social security payments for up to five years, reducing costs for IT firms like TCS and Infosys. Around 75,000 Indian professionals working in nearly 900 Indian companies in the UK are expected to benefit.