India-UK Free Trade Agreement Brings 10 Key Benefits for India

After three years of negotiations, India and the United Kingdom signed a historic Free Trade Agreement (FTA) worth £6 billion on Thursday in London. Indian Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer inked the deal, which is being hailed as a landmark achievement for both nations.

UK Prime Minister Starmer described the FTA as the "most significant economic and trade agreement" for post-Brexit Britain, projecting the creation of 2,200 new jobs in the UK. Meanwhile, Indian Prime Minister Modi called it a "blueprint for prosperity" for both countries.

The FTA will facilitate easier exports of UK-manufactured cars, medical equipment, soft drinks, and cosmetics to India, with average tariffs dropping from 15% to 3%. In return, 99% of Indian export products will gain duty-free access to the UK market. Additionally, the agreement will simplify work opportunities for Indian professionals in the UK, boosting employment prospects. According to a report by *The Times of India*, the FTA will bring 10 specific benefits for India in trade, exports, and employment. These are: 1. **Duty-Free Access**: Under the new FTA, 99% of Indian export products will enjoy duty-free access to the UK market. In return, India has reduced import duties on 90% of UK products, with 85% set to become duty-free within the next decade. Tariffs on Indian seafood (previously 20%), textiles and apparel (12%), chemicals (8%), and metals (10%) will be significantly reduced, while duties on 99.7% of processed food products (previously 70%) have been entirely eliminated. 2. **Increased Job Opportunities**: Duty-free access will spur job creation in India, particularly in labor-intensive sectors such as toys, textiles, leather goods, footwear, and seafood. Additionally, exports in gems and jewelry, engineering products, auto components, and organic chemicals are expected to rise, creating new employment opportunities. 3. **Cheaper British Cars**: Import duties on UK cars entering India will drop from 100% to 10%, though applicable to a limited quota. Duties on whisky will also decrease from 150% to 75% initially, and further to 40% over the next decade. Brands like Jaguar and Land Rover will become more affordable for Indian consumers. 4. **Boost for Agriculture and Farmers**: Indian agricultural exports to the UK are projected to grow by over 20% within three years, as the UK has removed tariffs on over 95% of agricultural products. Spices like turmeric, pepper, cardamom, mango pulp, pickles, pulses, vegetables, cereals, and ready-to-eat foods can now be exported duty-free, directly benefiting Indian farmers. 5. **Fisheries and Seafood**: Tariffs on shrimp, tuna, and fish feed (previously 4.2% to 8.5%) will be eliminated, opening up the UK’s £5.4 billion seafood import market. Coastal states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu will see significant economic gains. 6. **Market for Indian Branded Products**: The FTA will boost exports of Indian premium brands, particularly soft drinks and spices. The UK currently imports 1.7% of its coffee, 5.6% of its tea, and 2.9% of its spices from India. Indian instant coffee producers will gain a competitive edge against German and Spanish suppliers. 7. **Pharmaceuticals and Healthcare**: Indian generic medicines and medical devices will gain duty-free access to the UK. Additionally, opportunities will open for Indian firms in IT, finance, consulting, and education sectors. 8. **Opportunities for Indian Professionals**: The FTA simplifies work opportunities for Indian professionals in the UK. Qualified teachers, musicians, chefs, and other independent professionals can work in 35 sectors for up to two years without needing a UK office. 9. **Social Security Benefits**: Indian workers in the UK for three years will no longer need to pay double social security contributions, benefiting approximately 75,000 workers. 10. **Women’s Empowerment**: The FTA will enhance business and employment opportunities for Indian women, particularly in products like Kolhapuri chappals from Maharashtra, which can now be exported duty-free to the UK.