Landmark India-UK FTA: Paving the Way for Enhanced Trade and Economic Growth

A new Free Trade Agreement has been signed between India and the United Kingdom, ushering in a new era of economic cooperation. Under this FTA, 99% of Indian exports will enter the UK without duties, encompassing nearly 100% of bilateral trade. In return, India will ease tariffs on 90% of UK imports, accounting for 92% of the import value. The FTA is poised to benefit India’s services sector by streamlining IT and outsourcing operations. Furthermore, it will open avenues for financial and professional services in both countries. Indian technological innovations will gain free access to UK markets, and UK distilleries along with the automotive sector will experience reduced tariffs in India. This agreement is expected to boost labour-intensive industries such as leather, footwear, textiles, and clothing. India has also taken steps to protect its local interests by excluding dairy imports from the UK and placing restrictions on certain imported goods. During the signing, Prime Minister Modi thanked UK Prime Minister Keir Starmer and his government for condemning the Pahalgam terror attack. He emphasized the shared view that terrorism should be combatted without bias and that those who abuse democratic freedoms to undermine democracy must be held accountable. He also assured that Indian agencies would coordinate with UK agencies on extraditing economic offenders. The signing ceremony in London was attended by key ministers from both countries.