From Scotch and Salmon to IT Services and Indian Handicrafts, the Historic Free Trade Agreement Unlocks Billions in Opportunities
India-UK Free Trade Agreement Signed in London
In a landmark move, India and the United Kingdom have signed a long-awaited Free Trade Agreement (FTA) on Thursday during Prime Minister Narendra Modi’s two-day UK visit. The agreement was formalized in London by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds, in the presence of PM Modi and UK PM Keir Starmer.
The deal marks the end of three years of intense negotiations and is expected to boost bilateral trade by $34 billion annually, while creating employment, empowering professionals, and enhancing market access in both countries.
🔍 What Will Get Cheaper in India?
The FTA brings a wave of good news for Indian consumers:
- Tariff on British Whisky will drop from 150% to 75% immediately, and further to 40% over 10 years
- Luxury Cars & EVs: Import tariffs on electric vehicles will fall from 110% to 10%, within a quota
- Food & Drink Products: Soft drinks, chocolates, biscuits, salmon, and lamb will now be significantly cheaper
- Medical Devices & Aerospace Parts: Indian industries can now access critical UK tech at lower costs
👨💼 What It Means for Indian Professionals
The trade pact creates a massive gateway for Indian talent to thrive in the UK:
- No Economic Needs Test: Indian professionals and freelancers can work in 36 service sectors
- Two-Year Stay Without Office Setup: IT and consulting professionals can now work freely
- 60,000+ IT Jobs/Year: Top Indian firms like TCS, Infosys, HCL, Wipro expected to benefit
- No UK Social Security Deductions: Indian professionals exempted from payments for up to 3 years
- Chefs, Yoga Teachers, Musicians and other skilled freelancers now get easier access to UK markets
📈 How India Gains Beyond Lower Prices
- Boost for Make in India: Indian exports from textiles to tech gain greater UK market access
- Skill Development & Women Empowerment: The deal fosters entrepreneurship across India, especially among youth and women
- Cultural Heritage Recognition: Handicrafts like Kolhapuri chappals and Banarasi sarees now enjoy duty-free status
How the UK Benefits
- Tariff Cuts on 90% of Lines: With 85% of tariffs eliminated in 10 years
- Public Procurement Access: UK firms can now bid on Indian tenders worth ₹4.09 lakh crore annually
- Job Creation: Estimated 2,200+ new jobs in the UK
- Wage Growth: British workers could see up to £2.2 billion in wage increases
- More Affordable Goods: UK consumers will get cheaper clothing, shoes, food, and home goods
📌 What’s Next?
This deal signals a new era of India-UK cooperation across trade, tech, culture, and jobs. It will take progressive effect in phases, with implementation timelines being finalised in the coming weeks.
The FTA is not just about goods and services—but a strategic partnership placing Brand India on the global economic map.
📍This is a developing story. Updates will follow as the agreement takes effect and policies are rolled out.
Also Read : Kolhapuris to Banarsis: India’s Heritage Wins Big in UK Trade Deal
