India and UK Finalize 'Historic' Free Trade Agreement, Aiming to Boost Trade and Create New Employment Opportunities

 India and the United Kingdom have concluded a landmark Free Trade Agreement, finalizing negotiations in late April. Prime Ministers Narendra Modi and Keir Starmer praised the deal as a major milestone that will deepen bilateral ties, increase trade, and create new job opportunities.

The FTA eliminates UK tariffs (2–18%) on Indian goods like textiles, footwear, auto components, and machinery—supporting India’s labour-intensive sectors. In exchange, India will gradually reduce duties on UK whiskey and gin from 150% to 40% over ten years, and cut automotive tariffs under a quota system. UK exports such as cosmetics, medical devices, and food products will also benefit from reduced Indian tariffs.



Sensitive Indian agricultural items like dairy and apples remain excluded to protect local farmers. The textile and footwear industries welcomed the move, while the alcohol sector expressed concerns about similar future deals with other countries.

A key highlight is the Double Contribution Convention, which exempts Indian professionals in the UK from social security payments for three years—boosting talent mobility. Nasscom hailed the move as a win for the services sector and innovation.

The UK called it its biggest trade deal post-Brexit, and India sees it as its most ambitious yet. Talks on a Bilateral Investment Treaty are also nearing completion.

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