Unlocking Trade Potential: The India-UK Free Trade Agreement Explained

The India-UK Free Trade Agreement (FTA), signed in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, marks a pivotal moment in international trade. The agreement, which was finalized in May and formally signed this week, aims to substantially increase bilateral trade, targeting $120 billion by 2030. The FTA introduces substantial changes in import duties. Key Indian exports, including marine products, gems and jewelry, and textiles, will receive duty-free access to the UK market. Conversely, UK exports to India will see reduced tariffs, offering Indian consumers greater access to affordable goods. This trade deal is also expected to boost India’s agricultural exports. The UK market offers opportunities for Indian products such as tea, mangoes, spices, and seafood. Moreover, the agreement addresses import duties on items like whisky and automobiles, showing an intent to facilitate trade across various sectors.