🔔 Top Headline - India & UK Seal Landmark Free Trade Pact
- fxmethods
- Jul 24
- 2 min read
India & UK Sign Historic Free Trade Agreement (FTA) After three years of intense negotiations, India and the United Kingdom have officially signed a comprehensive Free Trade Agreement (FTA) in London. The deal marks India’s first major trade pact with a Western economy and is hailed as the UK’s most significant post-Brexit trade breakthrough.
🌍 What’s in the Deal?
📦 Tariff Reductions
UK to remove duties on 99% of Indian exports—including textiles, leather, jewellery, toys, and spices.
India to slash tariffs on 90% of UK exports, notably:
Scotch whisky: Duties cut from 150% → 40% over 10 years.
Luxury cars: Tariffs reduced to 10% for a fixed import quota.
👷 Mobility & Labour
Indian employees on temporary assignments in the UK exempt from National Insurance for up to 3 years.
Recognition of professional qualifications in select sectors.
🏢 Market Access & Services
UK firms gain access to India’s insurance, legal, financial services sectors.
India retains policy space on digital trade and pharmaceuticals.
Public procurement access for UK businesses in India.
📊 What’s the Impact?
📈 Expected to increase bilateral trade by £25.5 billion annually by 2040.
💼 Estimated to add £4.8 billion to the UK’s GDP and create thousands of jobs in both nations.
🇮🇳 Boost for Indian SMEs in textiles, gems, and processed foods.
🍷 Lift for UK’s whisky producers and luxury car makers.
⚠️ Points of Contention
No immediate agreement on India’s demand for a Carbon Border Tax exemption.
Visa liberalization demands from India partially unmet.
UK opposition parties flag social security exemptions as “too generous.”
🔮 What’s Next?
The deal now awaits ratification by both parliaments.
A separate Bilateral Investment Treaty (BIT) is under negotiation.
Implementation expected by mid-2026.
“This trade pact is a win-win—respecting India's development goals while giving British industries a competitive edge.” – UK Prime Minister Keir Starmer
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