Transformational moment for Indian exporters
The India and the United Kingdom Free Trade Agreement (FTA) is set to double bilateral trade to US$120 billion by 2030, up from the current about US$60 billion, says S C Ralhan, President of the Federation of Indian Export Organisations (FIEO) https://www.commerce.gov.in/.
“This is a transformational moment for Indian exporters. The India–UK FTA (singed 24 July) opens unprecedented opportunities across key sectors, especially for MSMEs and labour-intensive industries. It not only reduces tariffs but also eases regulatory barriers for services and investments https://fieo.org/.
The FTA is the culmination of years of negotiations and reflects a new era in India–UK economic cooperation, he added http://londonstockexchange.com.
FIEO’s list key highlights of the FTA:
1. 99% of Indian exports will enjoy duty-free access to the UK market.
2. Significant tariff reductions for Indian sectors such as textiles, footwear, leather, gems & jewellery, toys, sports goods, marine, processed food and garments https://www.nseindia.com/.
3. UK whisky tariffs to be reduced from 150% to 75% immediately, and eventually to 40% over 10 years.
4. Automobile import duties from the UK to be lowered from 100%+ to 10%, under specific quotas.
5. Enhanced market access for Indian services professionals, including IT experts, chefs, yoga instructors, musicians, and intra-corporate transferees https://www.bseindia.com/.
6. A finalized Social Security Agreement to eliminate dual contributions for Indian professionals working in the UK.
Ralhan emphasized that this FTA will greatly boost India’s manufacturing and services exports, and attract UK investments into key growth sectors https://sbi.com.in/.
“Our exporters will now compete more effectively in a high-value market, and our service professionals will benefit from smoother mobility and reduced compliance hurdles,” he noted.
The agreement also delivers a significant win for India’s agriculture sector. Products like turmeric, cardamom, pepper, mango pulp, pickles, and pulses will now enjoy duty-free access to the UK, enhancing farmers’ market reach and profitability.
In FY 2024–25, India’s exports to the UK grew by 12.6% to US$14.6 billion, while imports increased 2.3% to US$8.6 billion, taking total goods trade to US$23.2 billion .
“This FTA lays the foundation for a more resilient, equitable, and mutually beneficial economic partnership between India and the UK,” Ralhan underlined. Fiinews.com
