India and UK Forge Historic Free Trade Agreement

India and the UK are poised to sign a comprehensive free trade agreement, marking a significant milestone in their bilateral relations. This deal, set to be inked during Prime Minister Narendra Modi’s visit to London, promises to bring about substantial tariff reductions and open up new opportunities for businesses and professionals in both countries.

Key Highlights of the Agreement:

Duty-Free Access for Indian Goods

The UK will offer duty-free market access to 99% of Indian products, a move that is expected to significantly benefit sectors such as textiles, footwear, and engineering goods.

Tariff Reductions on UK Exports

India will reduce tariffs on nearly 90% of UK goods, including substantial cuts on British whisky, gin, and automobiles, making these products more affordable in the Indian market.

Easier Access for Professionals

The agreement facilitates easier entry for Indian professionals, including chefs, yoga instructors, and business visitors, into the UK, along with exemptions from social security contributions for temporary workers.

Benefits for Businesses

Both Indian and British companies stand to gain from the pact, with Indian exporters like Welspun India and British firms such as Diageo and Aston Martin expected to see significant benefits.

Economic Boost and Public Procurement

The deal is anticipated to add £4.8 billion annually to the UK's GDP and allow UK firms to bid on Indian government procurement tenders, further strengthening economic ties between the two nations.