India clears 642-car import quota from UK under India-UK trade agreement
India's Directorate General of Foreign Trade approved seven companies to import 642 cars. These imports will occur under the India-UK free trade agreement's tariff rate quota provisions. The government had sought applications for a quota of approximately 5,000 vehicles for the year 2026. This approval marks the first allocation under the 2026 quota following recent applications. The agreement…
The Directorate General of Foreign Trade (DGFT) has granted import permissions to seven Indian companies to bring 642 cars from the United Kingdom for the rest of 2026, under the India-UK free trade agreement's tariff rate quota provisions, an official announced on Wednesday. The DGFT had opened applications in July for the allocation of import quotas for fully built passenger cars and commercial vehicles from the UK under the duty concession provisions of the trade pact, with the government requesting applications for a quota of approximately 5,000 vehicles for 2026.
Although eight companies submitted applications, only seven were approved, resulting in the quota being granted for 642 cars. The Comprehensive Economic and Trade Agreement (CETA) between India and the UK, effective July 15, allows for reduced customs duty on vehicle imports from Britain, provided quotas are met. Over the first 15 years of the pact, India has permitted the import of up to 3.78 lakh conventional-engine passenger cars, including mass segment vehicles, from the UK at reduced customs duty.
The agreement has led to a significant decrease in tariffs on automotive imports, from around 110% to 10%, with quotas governing vehicle trade between the two nations.
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