How Does the India-UK FTA Create a $37.5 Billion Market for Indian Farmers?
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Synopsis
The India-UK free trade agreement revolutionizes trade by offering Indian farmers access to a $37.5 billion agricultural market while protecting sensitive sectors. This deal promises job growth and new opportunities for Indian youth, particularly in the services sector. Discover how this agreement can transform the agricultural landscape and boost employment in India.
Key Takeaways
- Preferential access to the UK’s $37.5 billion agricultural market.
- Zero duty on processed foods enhances rural exports.
- Job growth in IT, finance, and consultancy sectors.
- Indian fishermen gain access to a $5.4 billion market.
- Clearer visa regulations for skilled professionals.
New Delhi, July 24 (NationPress) The India-UK free trade agreement has granted preferential access for Indian farmers to the UK’s $37.5 billion agricultural market, while ensuring that India safeguards its sensitive sectors such as dairy, vegetables, apples, cooking oils, and oats, according to an official statement.
Additionally, there is a significant advantage for rural India and exporters with zero duty on processed foods, a reduction from previous duties of up to 70 percent.
The trade agreement also significantly benefits Indian fishermen, as the $5.4 billion UK market for marine exports becomes accessible with the UK’s import duty on marine products reducing to zero from as high as 20 percent.
This free trade agreement also opens up exciting new prospects for India’s youth, who will see increased job opportunities and higher wages in service sectors such as IT, finance, and consultancy.
The duty-free access to the UK’s $238 billion market enhances job creation for young people and unveils new career paths in the export of textiles, leather, and gems. Furthermore, the UK market now welcomes Indian youth in fields like education and architecture services.
The agreement also facilitates smoother operations for Indian businesses, as the FTA provides simplified customs, equal treatment, and procurement access. Indian MSMEs can now bid for UK government contracts, and the services sector benefits from improved visa clarity.
Moreover, the FTA boosts job creation, particularly in labour-intensive sectors like textiles and clothing, which gain a competitive edge in the UK market.
The free trade agreement stipulates zero duty on key sectors, down from duties of up to 12 percent on textiles and clothing, 8 percent on chemicals, and 10 percent on base metals.
Businesses in the IT and services sectors now enjoy greater clarity regarding skilled Indian professionals. This includes better mobility access to the UK, allowing up to 1,800 Indian chefs, yoga instructors, and classical musicians to temporarily relocate to the UK to provide their services.
A senior official indicated that around 75,000 Indian workers in the UK will benefit from a 3-year exemption from social security contributions.
Alongside the FTA, the UK and India have established a Double Contributions Convention (DCC). This agreement ensures that employees transitioning between the UK and India, along with their employers, are only responsible for social security contributions in one country at a time.
Point of View
I view the India-UK FTA as a pivotal moment in enhancing trade relations and boosting economic growth. The agreement not only protects essential sectors but also creates significant job opportunities for the youth, ensuring that India remains competitive in the global market. We stand firmly with the nation's interests, promoting beneficial agreements that pave the way for progress and prosperity.
NationPress
26/07/2025
Frequently Asked Questions
What sectors are protected under the India-UK FTA?
The India-UK FTA fully protects sensitive sectors such as dairy, vegetables, apples, cooking oils, and oats, ensuring that India's agricultural interests are safeguarded.
How will the agreement benefit Indian farmers?
The FTA provides preferential access to the UK’s agricultural market valued at $37.5 billion, enabling Indian farmers to export their goods with reduced tariffs.
What opportunities does the FTA create for Indian youth?
The agreement opens new job prospects in sectors like IT, finance, and consultancy, along with opportunities in textiles, leather, and education services.
How does the FTA affect Indian fishermen?
Indian fishermen can benefit from a zero import duty on marine products in the UK, expanding access to a $5.4 billion market.
What is the Double Contributions Convention (DCC)?
The DCC ensures that employees moving between the UK and India are only liable to pay social security contributions in one country at a time, simplifying the process.
