Could the India-UK Free Trade Agreement Transform Global Trade?
Click to start listening
Synopsis
The signing of the India-UK Free Trade Agreement marks a historic milestone in trade relations. With significant tariff reductions and enhanced cooperation, this game-changing pact is set to benefit businesses and consumers alike, fostering innovation and growth across key sectors.
Key Takeaways
- The India-UK FTA will reduce tariffs on 99% of Indian exports and 90% of UK goods.
- Lower prices on luxury cars, cosmetics, and medical devices for Indian consumers.
- India's leather sector is projected to gain a 5% market share in the UK.
- The agreement fosters innovation and investment between the two nations.
- Exports to the UK in the gem and jewellery sector could reach $2.5 billion within three years.
New Delhi, July 24 (NationPress) Prime Minister Narendra Modi and UK Prime Minister Keir Starmer have officially signed the much-anticipated Free Trade Agreement (FTA) on Thursday, marking a pivotal moment in the trade and economic relations between India and the UK.
This historic agreement will see the UK significantly reduce duties on 99% of Indian exports, while India will cut tariffs on 90% of UK goods, leading to a remarkable reduction in tariff lines and specific regulatory processes.
Consumers in India can expect to see lower prices on imported goods, which include luxury cars, cosmetics, medical devices, gin, and Scotch whisky. Over the next two years, it is projected that India's leather sector will boost its market share in the UK by 5%.
During this momentous event organized by the Confederation of Indian Industry (CII), a delegation of 16 prominent Indian business leaders, headed by Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises and Co-Chair of the India-UK CEO Forum, joined PM Modi.
The industry leaders have expressed their enthusiasm for the trade agreement, labeling it as historic and a true game-changer for both nations.
“The Indian industry welcomes the India-UK FTA with optimism. This agreement establishes a modern, forward-looking partnership that will stimulate innovation, ease market access, and foster investment,” stated Mittal.
Businesses in both India and the UK stand to benefit significantly, as this agreement lays the foundation for enhanced bilateral cooperation across key growth sectors, he added.
Dr. Anish Shah, Group CEO and MD of Mahindra Group, remarked that this landmark trade agreement signifies a transformative moment in the global economic landscape and underscores India’s rising stature as a trusted partner and innovation powerhouse.
“This pact not only benefits trade but serves as a blueprint for a modern partnership that emphasizes innovation, sustainability, and inclusive growth,” remarked Shah.
Kirit Bhansali, Chairman of the Gem and Jewellery Export Promotion Council, stated that this groundbreaking agreement opens up exciting new avenues for the gem and jewellery sector.
“Currently, our exports to the UK are valued at $941 million; with the new duty concessions, this is expected to soar to $2.5 billion within the next three years, raising the total bilateral trade in our sector to an estimated $7 billion,” Bhansali added.
Point of View
The India-UK Free Trade Agreement represents a significant step towards strengthening bilateral relations and fostering economic growth. It reflects an understanding that global trade dynamics are changing, and nations must adapt to remain competitive. The agreement is expected to bring tangible benefits to both countries, especially in sectors poised for growth.
NationPress
27/07/2025
Frequently Asked Questions
What is the India-UK Free Trade Agreement?
The India-UK Free Trade Agreement is a trade pact that aims to reduce tariffs and promote economic cooperation between India and the UK.
What are the benefits of the agreement?
The agreement will lower duties on a majority of goods, reduce costs for consumers, and stimulate investment and innovation in both countries.
How will this affect Indian consumers?
Indian consumers can expect lower prices on imported goods such as luxury cars, cosmetics, and medical devices due to reduced tariffs.
When was the agreement signed?
The agreement was signed on July 24, 2023, by Prime Minister Narendra Modi and Prime Minister Keir Starmer.
What sectors stand to benefit the most?
Key sectors such as leather, gem and jewellery, and luxury goods are expected to benefit significantly from this agreement.
