India-UK FTA: “The best part of the India-UK deal is to get a tariff of approximately 99 % …”, a senior government official says

The signing of the FTA between India and the United Kingdom, after the discussions that started in 2022, represents a large milestone. Prime Minister Narendra Modi praised the agreement as a historical outcome, while the Minister of Trade Biosh Joyal indicated that the commercial deal determines a new standard for fair and ambitious trade.

Officials from both countries highlighted the comprehensive nature of the agreement compared to previous Indian commercial deals. Indian companies will have a customs tariff to the British market, and Indian consumers can expect a gradual decrease in customs tariffs on imports from the United Kingdom.

A senior government official in the field of business today told that the most important advantage of the India’s Free Trade Agreement and the American Agency (FTA) is that it provides zero reaching nearly 99 % of customs tariff lines and about 100 % of the bilateral commercial value, which represents a major boom in trade diplomacy in India.

This change will have a major impact on access to distinguished engineering products such as cars, as well as foodstuffs such as Scotch Whisky, GIN and Lamb. Moreover, it will create opportunities for boundary purchases, which may lead to cost savings and improve efficiency in government expenditures.

He added that the free trade agreement also includes obligations related to services that are digitally delivered and processing non -fire barriers. In addition, there is a limited, but a limited, but extended transitional period of electric cars (EVS).

In the Free Trade Agreement, the participating countries agree to reduce or cancel customs duties on most of the circulating goods, as well as to reduce the non -transmitted barriers on important imports from each other. In addition, these agreements include simplifying the regulations to facilitate the trade of services and investments across the border.

Free Trade Conventions (FTA) provide different strategic advantages for the countries concerned. It allows the arrival of customs duties to the partners’ markets, allowing exporters to diversify and expand their export and export destinations. By receiving preferential therapy compared to non -FTA organs, local exporters can compete in the field of play, especially in the markets where similar agreements are already.

The most prominent FTA India-UK

> The Trade Agreement guarantees access from customs duties to UK markets compared to 99 percent of Indian exports, which provides great benefits to India.

> Almost all tariff lines, which cover almost all commercial value, will witness the customs tariff, providing great advantages.

> India will witness noticeable discounts in import duties, affecting 90 percent of customs tariff lines. Over the course of the next decade, 85 percent of these elements will be completely free of customs tariffs.

In addition, India will benefit from the obligations of the UK’s free trade agreement in the various services sectors, including financial, financial, professional and educational services.

> By agreeing to a decrease in customs tariffs on products such as whiskey, medical devices, advanced and lame machines, India will help get rid of commercial barriers and enhance the competitiveness of UK exports.

> The car tariff is to decrease from more than 100 to 10 percent through the quota system. Import duties on whiskey and jinn will also witness a decrease from 150 percent to 75 percent at first, with an additional decrease to 40 percent over ten years.
The free trade agreement will lead to low import duties on various products such as cosmetics, space components, pregnancy, medical equipment, salmon, electrical machines, soft drinks, chocolate, biscuits, and benefit from companies and consumers in India.

> An important teacher is to waive the social security contributions to Indian workers working in the United Kingdom. Under the dual contribution agreement, this concession will lead to great cost savings for Indian service providers who send workers to the United Kingdom, which enhances a competitive advantage in the market.

The United Kingdom expects that the trade agreement of bilateral trade will increase by 25.5 billion pounds annually in 2040. Trade between the two countries reached 42.6 billion pounds in 2024. Whitehaoul expects that the FTA will contribute to 10 additional basis points to the rate of GDP growth in the United Kingdom every year.

In 2024, the United Kingdom exported 17.1 billion pounds of India and imported 25.5 billion pounds. India ranked 11 commercial partners in Britain. The United Kingdom described the agreement as the most important bilateral trade deal since Britain left the European Union in 2020.