New Delhi: India will not give any duty concessions on British wines and will offer only limited benefits for UK beer under the new Free Trade Agreement (FTA) with the United Kingdom, an official confirmed on May 6.

No duty reduction on sensitive farm products

Along with wine, several sensitive agricultural products are also on India's exclusion list. These include dairy products, apples, cheese, oats, and animal and vegetable oils. "Wine is on the exclusion list, along with several other agricultural products in the trade pact. We are also offering only a limited duty concession on British beer," the official said.

What the trade deal covers

On May 6, India and the UK announced they had concluded talks on their FTA. The agreement will make British Scotch whisky and cars cheaper in India, while reducing import duties on Indian products like garments and leather goods in the UK.

As per the deal, India will reduce the import duty on UK whisky and gin from 150 percent to 75 percent, and further down to 40 percent over a 10-year period.

Why wine duty remains unchanged

Not offering duty cuts on British wines is important because the European Union (EU) is a major player in the global wine market. If India had reduced duties on UK wines, the EU could have demanded similar cuts during their ongoing FTA negotiations with India.

Talks for an FTA between India and the EU are already at an advanced stage.

Limited impact on Indian whisky market

Addressing concerns from Indian whisky manufacturers, the official said that the gradual duty cuts on Scotch whisky will not harm the domestic industry. "The reduction will be implemented slowly over 10 years and the current import volumes are quite low," the official added.

When will the FTA come into force?

Even though India and the UK have announced the conclusion of talks, it will take over 15 months for the agreement to actually come into effect. Currently, both sides are carrying out legal checks, known as "legal scrubbing," of the final text.

"Maybe by August-September, the text would be made public," another official mentioned.

After signing, the FTA will go through the ratification process in the UK Parliament, which will take about a year. Only after that will the pact be ready for full implementation.

(PTI inputs)