The trade agreement will not be in force up to a year, so do not expect to notice immediate changes.
Over time, however, the British government claims that the drop in prices on clothing, jewelry and frozen shrimp “could” lead to cheaper prices and more choice.
This agreement could also be a great victory for British companies that manufacture the goods that have seen reduced prices, such as car manufacturers and whiskey distiller.
For example, prices on whiskey and gin imported into India from the United Kingdom will be divided by two from 150% to 75% before reducing 40% by the 10th year of the agreement. Automotive prices will drop from more than 100% to 10%.
This will give a boost to these two industries, which seem to be hard affected by American prices, as this will mean that Indian companies wishing to import these products will pay less import costs than before.
If companies end up exporting more goods to India and making higher profits, this could lead them to spend more for hiring personnel, invest and pay more taxes.
In India, consumers could see much more choices among the goods that have been included in the agreement. Clothing companies and jewelers will also be able to access the British market that will increase their margins.
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