Summary:

After 3.5 years of negotiations, India and the United Kingdom have signed a Free Trade Agreement (FTA), marking a significant milestone in their bilateral relations. The agreement eliminates UK tariffs on 99% of Indian goods, boosting exports of textiles, toys, leather, and other products. Over the next ten years, India will reduce tariffs on 90% of UK products. Key tariff cuts include those on whisky, gin, and vehicles, while sensitive sectors such as dairy and apples remain protected.

India also secured a Social Security Agreement that exempts eligible professionals from UK contributions for three years, benefiting over 60,000 IT workers and saving more than ₹4,000 crore. The FTA enhances mobility and market access in IT, finance, and education. Although the Bilateral Investment Treaty remains unresolved, the agreement strengthens trade diplomacy and supports India’s goal of deeper integration into global value chains.

Source: IBFE

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