India, UK seal historic Free Trade Agreement
THE JHARKHAND STORY DESK London, July 24: In a significant boost to bilateral economic ties, India and the United Kingdom signed…
THE JHARKHAND STORY DESK
London, July 24: In a significant boost to bilateral economic ties, India and the United Kingdom signed a landmark Free Trade Agreement (FTA) on Thursday in London, in the presence Prime Ministers Narendra Modi and Keir Starmer.
The pact, described as forward-looking and mutually beneficial, seeks to substantially reduce trade barriers and enhance market access for goods and services between the two nations.
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Under the agreement, India will remove tariffs on nearly 99% of tariff lines, representing almost the entire trade value, opening vast opportunities for exports across sectors such as textiles, leather, gems and jewellery, engineering goods, auto components, marine products, toys, and sports goods.
The Commerce and Industry Ministry had earlier said the FTA aligns with India’s vision of Viksit Bharat 2047 and will play a pivotal role in driving growth ambitions on both sides.
The UK government confirmed that India’s average tariff on British goods will drop dramatically—from 15% to 3%—making it easier for UK firms to enter the Indian market. Products such as cars, medical devices, soft drinks, and cosmetics are expected to see smoother access.
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One of the biggest beneficiaries will be British whisky producers. Tariffs on Scotch whisky, currently at 150%, will be halved to 75% immediately and further reduced to 40% over the next decade, providing the UK with a competitive edge against global rivals.
Both countries have set an ambitious goal of raising bilateral trade to $120 billion by 2030, banking on the FTA to accelerate this trajectory by eliminating or cutting duties on a wide range of goods.
