India and the UK have officially sealed a Free Trade Agreement (FTA) that is expected to bring significant economic advantages to both nations. The agreement, finalized after years of negotiations, aims to boost bilateral trade, create job opportunities, and lower prices for consumers.

Key Highlights and Benefits for India:

• Duty-Free Access to the UK Market: Approximately 99% of Indian exports will now benefit from zero import duties in the UK. This will significantly improve the competitiveness of Indian goods in the UK market compared to countries like Vietnam and Bangladesh.
• Boost to Key Sectors: The FTA is expected to create export opportunities for labor-intensive sectors such as textiles, marine products, leather, footwear, sports goods, toys, gems, and jewelry. Other sectors like engineering goods, auto parts, and organic chemicals will also benefit.
• Tariff Reductions on UK Goods: India has agreed to reduce or eliminate tariffs on 90% of tariff lines for imports from the UK. 85% of these are set to become fully tariff-free within a decade.
• Cheaper Cars and Whiskey: Tariffs on automobiles will be reduced from over 100% to 10% under a quota system. Tariffs on whiskey and gin will be halved from 150% to 75% immediately, and then gradually reduced to 40% over the next ten years.
• Job Creation: The FTA is projected to create substantial job opportunities across India, particularly in the manufacturing and export sectors.
• Increased Bilateral Trade: The Indian government expects the FTA to double bilateral trade between India and the UK to $120 billion by 2030. Some reports suggest that the FTA will increase bilateral trade by £25.5 billion by 2040.
• Benefits for Indian Professionals: The Double Contribution Convention, part of the FTA, will exempt Indian workers in the UK and their employers from social security contributions for three years. This will make Indian service providers more competitive in the UK. The FTA is also expected to facilitate the movement of Indian professionals to the UK for employment opportunities.
• Access to Public Procurement Market: The deal will give UK businesses access to India's public procurement market, comprising approximately 40,000 tenders with a value of at least £38 billion a year.
• Boost to GDP and Wages: The FTA is expected to boost the UK's GDP by £4.8 billion and increase wages by £2.2 billion each year in the long term.

Benefits for the UK:

• Access to India's Growing Market: The FTA will provide UK businesses with access to India's large and rapidly expanding market, including its growing middle class.
• Tariff Reductions on Key Exports: India will reduce tariffs on various UK products, including whisky, cars, cosmetics, medical devices, aerospace, lamb, salmon, electrical machinery, soft drinks, chocolate, and biscuits.
• Increased Competitiveness: The tariff reductions will enhance the competitiveness of UK exports in the Indian market.
• Opportunities for High-Growth Sectors: The agreement will provide market access wins for UK companies in advanced manufacturing, medical technology, and clean energy.

Overall Impact:

The India-UK FTA is a comprehensive agreement that is expected to have a far-reaching impact on trade and economic relations between the two countries. By reducing tariffs, promoting investment, and facilitating the movement of professionals, the FTA will create new opportunities for businesses and consumers in both India and the UK. The agreement is seen as a significant step towards strengthening the strategic partnership between India and the UK and promoting economic growth and prosperity in both nations.