India-UK free trade deal signed: Boost for farmers, fishermen, IT firms and auto enthusiasts

In a landmark development, India and the United Kingdom have signed a comprehensive Free Trade Agreement (FTA) aimed at doubling bilateral trade by 2030. The pact promises significant benefits across agriculture, fisheries, IT, manufacturing, and luxury goods, while opening up new employment opportunities and reducing import costs for premium British products.

Also read: PM Modi set to visit UK and Maldives to strengthen trade and diplomatic ties

The agreement was signed by Indian Commerce Minister Piyush Goyal and UK Trade Minister Jonathan Reynolds in the presence of Indian Prime Minister Narendra Modi and British Prime Minister Sir Keir Starmer. This strategic deal marks a major step in strengthening economic ties between the two democracies.

Indian farmers, fishermen, exporters, and technology professionals are set to gain significantly. In return, India has offered selective market access to British goods and services, with safeguards in place to protect domestic sectors like dairy and basic agriculture.

Key Highlights of the India-UK Free Trade Agreement:

• Duty-Free Agricultural Exports: Indian spices, mango pulp, pickles, grains, and cardamom can now enter the UK market without import duties, enhancing farmers’ profits.
• Fisheries Sector Boost: Indian fish exports—especially from Tamil Nadu, Kerala, Andhra Pradesh, and Odisha—will be duty-free, eliminating the previous 4.2–8.5% tax.
• Luxury Car Prices Slashed: Import duties on British-made cars such as Aston Martin, Bentley, and Land Rover will drop from 100% to 10%, making them more affordable for Indian buyers.
• Cheaper Scotch Whisky: Import duty on Scotch will be cut from 150% to 75% immediately, and further reduced to 40% over the next decade.
• IT Sector Gains: Indian IT firms like TCS, Infosys, and Tech Mahindra will gain easier market access. Around 60,000 tech professionals will benefit annually.
• Jewellery and Handicraft Exports Rise: Indian jewellery, leather goods, textiles, and Channapatna toys will enjoy near duty-free access to the UK.
• Social Security Relief: Indian employees in the UK will be exempted from British social security contributions for up to three years—saving ₹4,000 crore annually.
• Market Entry for Indian Professionals: Temporary work access granted for Indian chefs, yoga and music teachers in the UK, boosting the service sector.
• Cosmetics and Medical Devices Cheaper: British products like cosmetics, medical devices, chocolates, and biscuits will become more affordable in India.
• UK Access to Indian Tenders: British firms can bid on Indian non-sensitive government tenders up to ₹2 billion, opening up 40,000 opportunities annually.

This FTA is expected to reshape Indo-UK economic cooperation and drive inclusive growth across both nations.