In an effort to complete a free-trade agreement between the two countries before the end of the year, India has proposed lowering import levies on some electric vehicles from the United Kingdom.The Indian government is mulling a 30% concessional tariff on 2,500 electric vehicles imported
annually from the UK valued above $80,000. Currently, India assesses tariffs ranging from 70% to 100% on automobiles imported as fully assembled units, depending on their worth. One of the remaining outstanding concerns in the free trade discussions is the UK’s desire for import concessions on electric vehicles. The agreement was expected to be finalized by the end of last month, according to UK Prime Minister Rishi Sunak and his Indian counterpart Narendra Modi.
The final decision on India’s stance on EV import taxes has yet to be made. The two countries expect the free trade deal would double bilateral trade by 2030 through lower tariffs and increased market access. It would also be a political victory for both governments, as the UK- India agreement is considered as a crucial prize of Brexit and a method to promote India’s industrial goals.
India levies a variety of import charges on automobiles. The tax on unassembled autos imported from overseas ranges from 15% to 35%.