India-UK FTA Historic Deal Provides Duty-Free Access To 99% Of Indian Goods

India and the United Kingdom signed a historic free trade agreement (FTA) on July 24 during PM Narendra Modi’s visit to the UK, where he met his British counterpart Keir Starmer. This FTA which was under negotiation for around three years, will give a much-needed boost to bilateral trade between the two countries by around $ 34 bn annually. The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynold in presence of the PMs of both the countries. With this landmark deal, India is set to see tariff slashes on several products imported from the UK and the export businesses in India will also benefit immensely. Goyal said that the deal provides duty-free access for about 99% of Indian exports, which will unlock “nearly $ 23 bn in opportunities for labour-intensive sectors, marking a new era for inclusive and gender-equitable growth.” Here’s what gets cheaper for India in terms of imports. (1) Aerospace parts & medical devices. (2) Soft drinks, cars: India will also have better access to British products such as soft drinks, cosmetics and cars. India’s average tariff on UK products will drop from 15% to 3%. (3) Duty cut on scotch by 50% — from 150% to 75% and then to 40% over the next 10 years – giving the UK an edge over international competitors. (4)  More affordable for Indians to live in the UK. Indian firms and freelancers will have access to 36 service sectors in the UK with no ‘Economic Needs Test’.  And Indian professionals can work in 35 UK sectors for 24 months, even without an office in the country. With tariff elimination (as high as 18%) under the CETA, engineering exports to the UK could nearly double in the next five years to touch $ 7.5 bn by 2029-30.