New Delhi: The landmark India-UK Free Trade Agreement (FTA) officially came into effect on Tuesday, marking a major milestone in bilateral economic ties. The agreement is expected to boost trade, reduce import and export duties, and make several imported products cheaper for Indian consumers.
The agreement received final approval following bilateral talks between Prime Minister Narendra Modi and UK Prime Minister Keir Starmer on the sidelines of the recent G7 Summit.
The two countries aim to increase bilateral trade from $56 billion to $100 billion by 2030 under the pact.
99% of Indian Exports to UK Get Zero Duty
Under the agreement, the United Kingdom has eliminated import duties on more than 99% of goods exported from India.
The move is expected to significantly benefit Indian exporters by making products more competitive in the UK market.
Key sectors expected to gain include:
- Textiles and garments
- Leather products
- Gems and jewellery
- Engineering goods
- Seafood
- Processed and packaged food products
- Big Relief for Indian Professionals
The FTA also provides major benefits for India’s services sector.
IT professionals, engineers, doctors and other skilled workers are expected to find it easier to work in the UK.
Under the Social Security Agreement, Indian employees on temporary assignments in the UK will not have to pay social security contributions in both countries for up to five years, reducing costs for both employees and employers.
Imported UK Products Likely to Become Cheaper
The agreement is also expected to reduce prices of several British products in India due to lower import duties.
Products likely to become cheaper include:
Luxury cars
Industrial machinery and spare parts
Branded food products
Chocolates
Imported fruits
Other selected UK consumer goods
The India-UK Free Trade Agreement is expected to strengthen economic cooperation, expand market access for businesses, and create new opportunities for trade, investment and employment in both countries.
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