India and the United Kingdom have formalized a Free Trade Agreement (FTA), marking a significant step in strengthening their partnership. This agreement will enable duty-free access for nearly all (99%) Indian exports to the UK, covering almost all bilateral trade in value terms. Simultaneously, India will reduce or eliminate duties on a substantial portion (90%) of UK imports, representing 92% of the total import value. The agreement promises significant benefits for India’s services sector, facilitating IT and outsourcing operations, and opening doors for financial and professional services. It also ensures free market access for Indian tech innovations in the UK, while offering reduced tariffs for UK distilleries and the automotive sector in India. Labour-intensive sectors like leather, footwear, textiles, and clothing will also benefit. India has also secured its interests by excluding dairy imports from the UK and maintaining restrictions on certain goods that could harm domestic markets. Prime Minister Modi expressed gratitude to UK Prime Minister Keir Starmer’s government for condemning the Pahalgam terror attack and emphasized the importance of cooperation in fighting terrorism and extraditing economic offenders. The agreement was signed in London in the presence of key ministers from both nations.
