India-UK Free Trade Agreement Delivers 10 Major Benefits for India

After over three years of negotiations, India and the United Kingdom have signed a landmark Free Trade Agreement (FTA) valued at £6 billion. The agreement was formalized on Thursday in London by Indian Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer, marking a significant milestone in bilateral relations.

UK Prime Minister Starmer hailed the FTA as the "most transformative economic and trade deal" for post-Brexit Britain, projecting the creation of 2,200 new jobs in the UK. Indian Prime Minister Modi described it as a "gateway to shared prosperity" for both nations.

The FTA will streamline exports of UK-manufactured vehicles, medical equipment, beverages, and cosmetics to India, with average tariffs reduced from 15% to 3%. In return, 99% of Indian exports will gain duty-free access to the UK market. Furthermore, the agreement will enhance work opportunities for Indian professionals in the UK, fostering greater employment prospects. According to *The Times of India*, the FTA offers India 10 key advantages in trade, exports, and job creation. These include: 1. **Duty-Free Market Access**: Under the FTA, 99% of Indian exports will enter the UK duty-free. India has reciprocated by lowering import duties on 90% of UK goods, with 85% set to become duty-free over the next 10 years. Tariffs on Indian seafood (previously 20%), textiles and apparel (12%), chemicals (8%), and metals (10%) will be significantly reduced. Additionally, duties on 99.7% of processed food products, previously at 70%, have been completely eliminated. 2. **Job Creation Boost**: Duty-free access will drive employment growth across India, particularly in labor-intensive sectors like toys, textiles, leather goods, footwear, and seafood. Increased exports in gems and jewelry, engineering products, auto components, and organic chemicals are also expected to generate new job opportunities. 3. **Affordable British Vehicles**: Import duties on UK cars entering India will drop from 100% to 10%, applicable to a specific quota. Duties on whisky will decrease from 150% to 75% initially, and further to 40% over the next decade. Iconic brands like Jaguar and Land Rover will become more accessible to Indian consumers. 4. **Agricultural Gains for Farmers**: Indian agricultural exports to the UK are expected to rise by over 20% within three years, as the UK has eliminated tariffs on over 95% of agricultural products. Spices such as turmeric, pepper, and cardamom, along with mango pulp, pickles, pulses, vegetables, cereals, and ready-to-eat foods, can now be exported duty-free, directly benefiting Indian farmers. 5. **Seafood and Fisheries Expansion**: Tariffs on shrimp, tuna, and fish feed (previously 4.2% to 8.5%) will be entirely removed, unlocking opportunities in the UK’s £5.4 billion seafood import market. Coastal states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu will see substantial economic benefits. 6. **Growth for Indian Branded Products**: The FTA will boost exports of Indian premium brands, particularly beverages and spices. The UK currently sources 1.7% of its coffee, 5.6% of its tea, and 2.9% of its spices from India. Indian instant coffee producers will gain a competitive advantage over German and Spanish suppliers. 7. **Pharmaceuticals and Healthcare Opportunities**: Indian generic medicines and medical devices will enjoy duty-free access to the UK. The agreement also opens doors for Indian firms in IT, finance, consulting, and education sectors. 8. **Enhanced Opportunities for Indian Professionals**: The FTA simplifies work access for Indian professionals in the UK. Qualified teachers, musicians, chefs, and other independent professionals can work in 35 sectors for up to two years without requiring a UK office. 9. **Social Security Relief**: Indian workers in the UK for three years will be exempt from double social security contributions, benefiting approximately 75,000 workers. 10. **Empowering Indian Women**: The FTA will create new business and employment opportunities for Indian women, particularly in products like Kolhapuri chappals from Maharashtra, which can now be exported duty-free to the UK.