India may revisit the tariff cuts on Scotch whisky agreed under a trade pact with the United Kingdom if the UK continues to impose curbs on steel imports, a senior Indian official said on Monday.
Trade Pact Details
Under the trade agreement, India had agreed to reduce tariffs on Scotch whisky from 150 percent to 75 percent initially, and further to 40 percent over a period of 10 years. The pact was aimed at boosting bilateral trade and strengthening economic ties between the two nations.
Official Statement
The official, who spoke on condition of anonymity, stated that India is closely monitoring the UK's trade policies, particularly regarding steel. If the UK maintains its restrictions on Indian steel imports, India may consider adjusting the tariff concessions granted on Scotch whisky. This move is seen as a reciprocal measure to protect domestic interests.
The comment comes amid ongoing discussions between the two countries to resolve trade disputes. India has expressed concerns over the UK's imposition of safeguard measures on steel, which affect Indian exports. The official emphasized that India remains committed to fair trade practices but will take necessary steps to safeguard its industries.
Impact on Bilateral Trade
Any revision in the tariff cuts could impact the Scotch whisky industry, which has been eyeing the Indian market as a key growth area. India is one of the largest consumers of whisky globally, and lower tariffs were expected to boost Scotch imports.
However, the official noted that India's primary concern is to ensure a level playing field for its steel sector. The UK's steel curbs have been a point of contention, and India is seeking a resolution through diplomatic channels.
The development highlights the delicate balance in trade negotiations, where concessions in one sector are often linked to outcomes in others. Both countries are expected to continue talks to address the steel issue and maintain the momentum of the trade pact.
