The UK and India have officially entered their free trade agreement (FTA). Under the deal, tariffs on beauty and personal care products, which previously reached up to 22%, will either be eliminated immediately or over a period of up to 10 years.
The terms of the FTA include that 99% of Indian goods entering the UK and 90% of UK goods entering India will be duty-free or subject to reduced tariffs.
For Indian beauty companies, the FTA is expected to provide unprecedented access to the UK market. Indian products that previously faced import duties can now enter the UK duty-free, making them more competitive against goods imported from the rest of Europe, China, and other countries.
UK cosmetic businesses get to enjoy the same benefits, as the FTA reduces import barriers to India’s expanding beauty market.
“This is a watershed moment for the UK–India partnership. “Our landmark trade deal is designed to benefit businesses and consumers from day one with cheaper, quicker, and easier trade,” says Harjinder Kang, His Majesty’s trade commissioner for South Asia and the British deputy high commissioner for Western India.
According to the UK government, the FTA al is expected to boost annual bilateral trade by £25.5 billion (US$34.3 billion). Moreover, in the long run, India’s gross domestic product (GDP) is expected to rise by £5.1 billion (US$6.9 billion) and the UK’s GDP by £4.8 billion (US$6.5 billion).
To celebrate the agreement coming into force, a package of British products that will now benefit from the reduced tariffs arrived in Mumbai on a British Airways flight. The package included cosmetics from companies such as Lush, The Body Shop, Rodial, Collection Cosmetics, and Makeup Revolution.
“The UK–India FTA marks a significant milestone in the relationship between the UK and India and reinforces the long-term potential of one of the world’s most dynamic international corridors,” says David Wright, British Airways’ general manager in India.
