New Delhi/London: India and the United Kingdom have officially signed a landmark Free Trade Agreement (FTA) aimed at significantly enhancing bilateral trade, investment, and employment opportunities. The agreement, signed by the leaders of both countries, targets a doubling of trade volume to $120 billion by 2030.
The FTA includes substantial tariff reductions, particularly benefiting labour-intensive Indian exports such as textiles, leather goods, footwear, and garments. In return, the UK will gain improved access to Indian markets, with phased tariff reductions on British whisky, automobiles, aerospace components, medical devices, and other high-value products.
As part of the deal, 99% of Indian exports will receive zero-duty access to UK markets. The agreement also focuses on simplifying trade in services and easing regulations for cross-border investments.
Key provisions include:
- Tariff cuts on UK-made whisky and gin from 150% to 75%, with a further reduction to 40% within ten years.
- Reduction of import duties on automobiles from 100% to 10%.
- Duty concessions on UK exports such as chocolate, biscuits, beauty products, lamb meat, and electrical machinery.
The agreement will come into effect after ratification by the British Parliament, a process expected to take nearly a year.
Officials said the deal would create new export opportunities for Indian sectors with large employment bases, including marine products, sporting goods, toys, gems and jewellery, automotive components, engines, and organic chemicals.
In the services sector, the FTA is expected to benefit yoga instructors, musicians, chefs, business visitors, investors, contract service providers, and intra-corporate transferees, through streamlined visa and regulatory procedures.
Trade experts hailed the agreement as a strategic step in deepening India–UK economic ties and strengthening India’s presence in global markets.