India-UK FTA comes into effect
India-UK FTA officially came into force on July 15, opening a new chapter in trade relations between the two countries. The agreement is expected to boost exports, create jobs and strengthen economic ties by reducing tariffs and improving market access for businesses.
The agreement, officially called the Comprehensive Economic and Trade Agreement (CETA), was signed after nearly three years of negotiations. It is one of India’s biggest trade deals with a major developed economy.
What changes under the India-UK FTA?
The biggest benefit is that 99% of Indian exports will now enter the UK without customs duty. This gives Indian exporters a stronger position in one of the world’s largest consumer market.
The agreement also improves market access for Indian service providers and professionals. At the same time, it reduces several non-tariff barriers and makes trade procedures easier.
Which Indian sectors will benefit?
Several labour-intensive industries are expected to gain the most, including:
Textiles and garments
Leather and footwear
Gems and jewellery
Engineering goods
Marine products
Processed foods
Spices, fruits and vegetables
Carpets and handicrafts
Lower tariffs could make these products more competitive in the UK market and increase export opportunities for Indian businesses.
What does the UK get?
India will gradually reduce import duties on several British products. These include:
Premium cars
Scotch whisky
Gin
Chocolates
Some clothing and consumer goods
Selected electronics
Many tariff cuts will happen in phases instead of immediately.
Benefits for Indian professionals
The agreement also supports Indian professionals working temporarily in the UK. Eligible workers will receive relief from paying social security contributions in both countries for a specified period, reducing costs for employees and employers.
Trade target
India and the UK currently have bilateral goods and services trade worth around USD 55–60 billion. Both countries aim to increase this figure to USD 100 billion by 2030 through the new agreement.
Why this agreement matters
The India-UK FTA will improve exports, attract investment and create new employment opportunities. However, experts say Indian exporters must continue meeting strict UK quality and safety standards to make full use of the agreement.
Visit: The Economic Times
Also Read: Nagaland IED Blast: Assam Rifles Jawan Killed, Four Injured
