India-UK Trade Deal: A Boost for Businesses and Future Generations

The Free Trade Agreement (FTA) between India and the UK has been finalized, signaling a major step forward in their collaborative efforts. The agreement will facilitate nearly duty-free access for Indian exports (99%) to the UK, covering almost the entirety of the bilateral trade. India will reciprocate by lowering or removing tariffs on a large majority (90%) of UK imports, representing a significant portion of import value. This agreement will be instrumental in supporting India’s services sector, particularly information technology and outsourcing. It will also enhance opportunities in financial and professional services across both nations. The deal provides Indian tech companies with expanded access to UK markets, while UK distilleries and the automotive industry will benefit from reduced tariffs in India. Industries with a strong labor component, such as leather, footwear, textiles, and clothing, are also expected to see gains. India has ensured its interests are protected by maintaining restrictions on dairy imports from the UK and other items that may harm domestic markets. Prime Minister Modi, at the signing, acknowledged the UK’s condemnation of the Pahalgam terror attack and expressed shared viewpoints on combating terrorism and the extradition of economic offenders. The agreement was signed in London, witnessed by the respective ministers of commerce and trade from both countries.