Archive · 20 Jul 2026
India invites applications for UK car imports under FTA
The Indian government has started accepting applications for importing cars from the UK under a special trade agreement.
This agreement allows India to import 20,000 cars from the UK in the first year with lower taxes.
The first round of applications is for 9,316 cars, and only certain companies can apply.
The taxes on these imported cars will be lower than usual, making them cheaper.
There are different categories of cars with different tax reductions.
Some cars will have a 50% tax instead of 66%, and bigger cars will have a 30% tax instead of 110%.
There are also special rules for importing trucks and other goods carriers.
This is part of a bigger plan to improve trade between India and the UK.
The Indian government has invited applications for importing 9,316 cars from the UK under the India-UK CETA.
The total quota for the first year is 20,000 cars with preferential duties.
Eligible applicants include OEMs, dealers, and authorized channel partners.
Different categories of cars have different quota allocations and duty reductions.
The application window is open from July 21 to August 4.
The quota for goods carriers is 1164 units in the first round, with a total of 2500 units for the first year.
Duties on goods carriers will be reduced to 37% from 44%.
The agreement aims to boost trade relations and provide consumers with a wider variety of vehicles at potentially lower prices.
- Who
- The Indian government and the Directorate General of Foreign Trade (DGFT)
- What
- Invitation for applications for car import quotas under the India-UK CETA
- When
- Application window from July 21 to August 4
- Where
- India
- Why
- To facilitate the import of 20,000 cars from the UK in the first year of the CETA on preferential duties
Pro-Trade Perspective
Protectionist Perspective
Economic Benefits
Pro-Trade Perspective
The import of cars under preferential duties will boost trade relations between India and the UK, potentially leading to economic growth and job creation.
Protectionist Perspective
Increased imports may negatively impact domestic automobile manufacturers, leading to job losses and reduced economic activity in the local industry.
Consumer Access
Pro-Trade Perspective
Consumers will have access to a wider variety of vehicles at potentially lower prices due to reduced import duties.
Protectionist Perspective
Lower duties on imported vehicles may make it harder for domestic manufacturers to compete, potentially leading to higher prices for locally produced vehicles.
- Total Quota for 2026
- 20,000 cars
- First Phase Quota
- 9,316 units
- Application Window
- July 21 to August 4
- Eligible Applicants
- OEMs, dealers, and authorized channel partners
- Duty Reduction for Cars (up to 1500 cc)
- 50% instead of 66%
- Duty Reduction for Cars (1500-3000 cc petrol, 1500-2500 cc diesel)
- 50% instead of 66%
- Duty Reduction for Cars (above 3000 cc petrol, above 2500 cc diesel)
- 30% instead of 110%
- Quota for Goods Carriers
- 1164 units in first round, 2500 units overall
- Duty Reduction for Goods Carriers
- 37% instead of 44%
