Historic UK-India Free Trade Agreement Concluded

Prime Minister Narendra Modi announced a 'historic milestone' with the conclusion of a Free Trade Agreement (FTA) between India and the UK, set to be officially signed during British Prime Minister Keir Starmer's visit to India this year.

Key Benefits for India: The agreement eliminates tariffs on 99% of Indian products entering the UK, facilitating trade and employment opportunities for Indian professionals in Britain without altering the UK's immigration framework.

Economic Impact and Trade Growth

The trade volume between India and the UK reached $21.34 billion in 2023-24, with India maintaining a favorable trade surplus. The FTA is expected to stimulate domestic consumption and economic growth by providing Indian consumers with high-quality products at reasonable prices.

Sector-Specific Advantages

The FTA opens new export avenues for sectors like textiles, marine products, and gems and jewellery, while reducing duties on Scotch whisky and UK-made cars, making them cheaper in India. It also includes provisions for Indian professionals in the UK, covering chefs, musicians, and yogis.

Long-Term Prospects

The agreement is projected to add GBP 25.5 billion annually to bilateral trade, aiming for a USD 100 billion target by 2030. It also introduces new elements like gender rights and SME provisions, marking it as India's most extensive FTA.