India lays out tariffs and quotas for U.K. vehicles under trade deal

📌 Summary:

• India released the list of quotas and tariffs for automobile imports from the United Kingdom under the India-U.K. Comprehensive Economic and Trade Agreement (CETA)
• CETA comes into force on July 15, 2026
• Per the DGFT notification, 20,000 completely built units (CBUs) of petrol and diesel passenger vehicles will be allowed from the U.K. at concessional duties of 30-50% (depending on car size), down from the normal 66-110% import duty

🎯 UPSC Relevance: GS2 International Relations / GS3 Economy — bilateral free trade agreements, tariff liberalisation, tariff-rate quotas, and their impact on domestic industry

📝 Prelims Facts:

• CETA = Comprehensive Economic and Trade Agreement between India and the U.K.
• CBU = Completely Built Unit (a fully assembled imported vehicle)
• Notification issued by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce

🔑 Key Term: Tariff-Rate Quota (TRQ) — a mechanism allowing a specified quantity of imports at a lower (concessional) tariff, with higher duties applying beyond the quota