Historic Signing of India-UK Free Trade Agreement

In a landmark event, the India-UK Free Trade Agreement (FTA) was officially signed during Prime Minister Narendra Modi's visit to the United Kingdom, in the presence of UK Prime Minister Keir Starmer. This agreement marks a significant milestone in bilateral relations, aiming to boost trade to $120 billion by 2030.

Key Benefits of the FTA

The FTA introduces reduced tariffs on exports of labor-intensive goods such as leather, footwear, and clothing from India, while lowering import duties on British whisky and automobiles. This move is expected to significantly enhance trade volumes and economic cooperation between the two nations.

What the Agreement Covers

Covering 99% of Indian exports to the UK, the agreement ensures duty-free access to British markets. It encompasses various sectors including goods, services, innovation, and intellectual property rights, facilitating easier trade and investment flows.

Impact on Professionals and Social Security

The agreement also benefits professionals by simplifying the movement of individuals like yoga instructors, musicians, and chefs between the two countries. Additionally, the Double Contribution Convention Agreement eliminates duplicate social security payments for Indian professionals in the UK.

Trade Growth Between India and the UK

With India's exports to the UK growing by 12.6% to $14.5 billion and imports increasing by 2.3% to $8.6 billion in 2024-25, the FTA is set to further accelerate this positive trend, building on the $21.34 billion trade volume recorded in 2023-24.