Archive · 28 Jul 2025
India Faces Revenue Loss in India-UK Trade Deal's First Year
India and the UK made a deal to trade more goods.
When they do this, it changes the taxes (tariffs) they pay.
India will lose about 4060 crore rupees in tax money in the first year.
The UK will lose about 3,884 crore rupees.
India will stop taxing some items from the UK right away, like shaving cream.
The UK will stop taxing almost all items from India.
This might lead to more business for both countries and offset the initial tax losses.
India will lose around Rs 4,060 crore in revenue in the first year of the India-UK trade deal.
The UK, in the first year, will forego about $474 million (Rs 3,884 crore).
India immediately eliminates tariffs on 64% of imports from the UK.
The UK will eliminate tariffs on 99% of Indian imports.
Tariffs on items like shaving creams and microwave ovens will be immediately eliminated.
- Who
- India and the UK governments.
- What
- India and the UK will experience revenue losses from import duties.
- When
- In the first year of the India-UK trade deal.
- Where
- India and the UK.
- Why
- Due to tariff reductions as part of the trade agreement.
- India's 1st Year Revenue Loss
- Rs 4,060 crore
- India's 10th Year Revenue Loss
- Rs 6,345 crore
- UK's 1st Year Revenue Loss
- $474 million (Rs 3,884 crore)
- India's Immediate Tariff Elimination
- 64% of UK imports
- UK Tariff Elimination on Indian Imports
- 99%
Sources
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