The long-awaited India-UK Free Trade Agreement (FTA) is set to be signed during Prime Minister Narendra Modi’s upcoming visit to the UK on Thursday. This marks India’s first major bilateral trade pact with a developed country in over a decade. The deal, which has been under negotiation for nearly three years, awaits final clearances from India’s Union Cabinet and the British Parliament.
Key Highlights & Benefits of the FTA
🇬🇧 Benefits for the UK:
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£4.8 billion (Rs 56,150 crore) projected annual boost to the UK economy.
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Tariffs on Scotch whisky and gin will be slashed from 150% to 75% immediately, and further down to 40% over 10 years.
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UK-made automobiles, which currently face over 100% tariffs, will see tariffs cut to 10% under a quota system.
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Tariff cuts on UK exports including:
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Medical devices
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Cosmetics
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Salmon
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Biscuits and chocolates
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UK consumers will benefit from lower prices on imported Indian garments, food, and footwear.
🇮🇳 Benefits for India:
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99% of Indian products to get duty-free access to the UK market.
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Key sectors gaining include:
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Gems and jewellery
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Textiles
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Sports goods
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Chemicals
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Furniture and machinery
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Many Indian goods currently face 4–16% tariffs in the UK.
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Electric and hybrid vehicle manufacturers from India to get preferential quota-based access to the UK market.
Strategic Impact
PM Modi will meet British PM Keir Starmer during his visit, with discussions covering not just trade, but also energy, health, education, and security cooperation. This FTA is expected to strengthen economic ties and deepen diplomatic relations between the two nations.
