India to provide duty cuts in FTA only if UK increases localisation to 45%

The Indian government has proposed to provide duty cuts for British automobile makers in the UK-India free trade agreement (FTA) only if they increase the utilisation of local components in their vehicles to 45 per cent. This demand has faced resistance from the UK, which prefers to maintain localisation at 25 per cent.

The UK side has also opposed India’s proposal to provide duty cuts for electric vehicles priced above $85,000 (about 70 lakh).

“The UK is hesitant to raise its domestic value addition to 45 per cent, yet they are pressing for substantial duty cuts. Non-adherence to the stricter