India’s Directorate General of Foreign Trade (DGFT) has approved an import quota covering 642 passenger vehicles from the United Kingdom for seven companies under the India-UK Free Trade Agreement.
The allocation is part of the market-access commitments under the trade pact and gives eligible companies access to a specified quantity of UK-made vehicles at the preferential tariff rates available under the agreement.
The quota mechanism is intended to manage vehicle imports while implementing India’s commitments under the FTA. Companies receiving allocations can import vehicles within their approved quantities, subject to the applicable conditions and procedures.
The India-UK trade agreement is designed to reduce or eliminate tariffs across a wide range of goods and expand market access for businesses in both countries. The automotive sector is among the areas covered by specific tariff and quota arrangements.
For UK vehicle manufacturers and exporters, the quota provides a defined channel to access the Indian market under the preferential framework. For Indian companies, it creates an opportunity to source eligible vehicles from the UK under the agreed terms.
The DGFT allocation marks an implementation step for the automotive market-access provisions of the India-UK FTA and is expected to support greater bilateral trade in automobiles.
Further quota allocations and implementation measures will depend on the terms of the agreement and applicable DGFT procedures.