- Historic Agreement Signed
India and the UK have finalized a comprehensive Free Trade Agreement (FTA) during Prime Minister Narendra Modi’s visit to the UK, marking the largest trade pact for both nations since Brexit. - Ambitious Trade Target
The deal aims to double bilateral trade to $120 billion by 2030, opening new avenues for exporters and businesses on both sides. - Tariff Eliminations and Reductions
- Nearly 99% of Indian exports including textiles, leather, pharmaceuticals, gems, jewelry, agriculture, and processed foods will enter the UK market duty-free.
- UK will reduce duties on Scotch whisky, gin, and automobiles, with significant tariff cuts phased over the coming decade.
- Sectoral Benefits for India
Key Indian industries set to benefit prominently include textiles, leather, pharmaceuticals, marine products, auto parts, engineering goods, and processed foods. - UK Firms Gain in India
British companies will enjoy easier regulatory access in Indian finance, telecom, and insurance sectors, plus the ability to bid for government procurements. - Safeguarding Sensitive Indian Sectors
India maintains protections for sensitive areas like dairy, apples, oats, and edible oils with no tariff cuts granted in these sectors. - Emphasis on Digital and Standards Harmonization
Both countries commit to digitalizing trade procedures and adopting mutually recognized product safety and hygiene standards to streamline commerce. - Implementation Timeline
The agreement will come into full effect after UK Parliamentary ratification, expected within about a year. - Economic and Employment Impact
The deal is forecasted to generate thousands of jobs, strengthen supply chains, and boost UK-India trade by £25.5 billion annually by 2040. - Caveats and Concerns
- Visa access for Indians remains limited despite trade gains.
- Intellectual property provisions may make generic medicines less affordable.
- UK carbon taxes on steel and aluminum exports from India remain in place, impacting certain sectors.
