New Delhi, Feb 15 (NationPress) The India-UK free trade agreement is anticipated to come into effect in April this year, setting the stage for a boost in Indian exports to the UK, as stated by a senior official on Sunday.

Signed in July of the previous year, the agreement now awaits approval from the UK Parliament to become operational.

The discussion on the Free Trade Agreement (FTA) has already commenced in both Houses of the British Parliament.

According to an official statement, under the free trade agreement, 99% of Indian exports to the UK will enjoy the advantage of zero duty. This development opens vast export opportunities for sectors heavily reliant on labor, including textiles, marine products, leather, footwear, sports goods, toys, gems and jewellery, as well as key sectors like engineering goods, auto parts and engines, and organic chemicals.

Furthermore, India has guaranteed that non-tariff barriers will be effectively addressed to facilitate the seamless flow of goods and services, preventing any unjustified restrictions on Indian exports.

In May of last year, Prime Minister Narendra Modi and his UK counterpart, Keir Starmer, announced the successful conclusion of the mutually beneficial India-UK FTA.

The agreement was finalized after PM Modi communicated directly with the UK Prime Minister over the phone.

Alongside the FTA, a Double Contribution Convention has been established to safeguard the interests of Indian workers residing in the UK.

Trade in services is also poised for substantial growth, encompassing areas such as Information Technology/Information Technology Enabled Services, financial services, professional services, and educational services.

Moreover, India has secured an exemption for Indian workers temporarily in the UK, allowing them and their employers to avoid paying social security contributions in the UK for a period of three years under the Double Contribution Convention. This exemption will significantly enhance the competitiveness of Indian service providers in the UK.

Under the agreement, tariffs on Scotch whisky will be reduced from 150% to 75%, with a further decrease to 40% by 2035.

India will also progressively lower import duties on automobiles from as high as 110% to 10% over five years via a quota-based system. In return, Indian manufacturers will gain market access in the UK for electric and hybrid vehicles within a quota framework.

This FTA emerges against a backdrop of strengthening economic ties between India and the UK, highlighted by their bilateral trade, which currently stands at approximately $60 billion and is expected to double by 2030.