Is the India-UK Deal the Most Significant Agreement Yet? Piyush Goyal Thinks So!
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Synopsis
Piyush Goyal hails the India-UK FTA as a groundbreaking agreement that promises significant benefits for various sectors in India. This deal, after years of negotiations, is set to enhance trade and protect domestic interests.
Key Takeaways
- India-UK FTA offers duty-free access for 99% of exports.
- 95% of agricultural products gain duty-free status.
- Exemption from social security tax for Indian professionals.
- Continued negotiations with the EU, US, and more.
- Focus on agreements that complement India's economy.
New Delhi, July 26 (NationPress) Commerce and Industry Minister Piyush Goyal on Saturday praised the India-UK free trade agreement (FTA) as a 'transformative' deal that offers substantial prospects and advantages for farmers, entrepreneurs, the MSME sector, young professionals, and fishermen.
“The Cabinet of India has given its nod to the India-UK FTA, and with the completion of the UK's parliamentary ratification process, the agreement is set to take effect,” he mentioned during a press conference.
According to the Commerce Minister, among all the FTAs India has entered into, the one with the UK stands out as the “largest, most comprehensive, and most crucial.”
“After nearly 22-23 years of negotiations, India and the UK have finalized a win-win FTA that benefits both nations,” he added.
This agreement, known as the Comprehensive Economic and Trade Agreement (CETA), guarantees unprecedented duty-free access for 99 percent of India's exports to the UK, encompassing almost the entire trade range. The agricultural sector emerges as a significant beneficiary, with around 95 percent of Indian agricultural products receiving duty-free access to the UK market.
In addition, India has safeguarded the interests of domestic farmers by excluding dairy products, edible oils, and apples from this FTA.
The groundbreaking pact also provides considerable relief to Indian professionals working in the UK, as they will now be exempt from paying social security taxes for up to three years, leading to estimated annual savings of Rs 4,000 crore.
Goyal also highlighted other FTAs in the pipeline, stating that each will follow a distinct template. “India is not engaged in a trade war with any country. All our FTAs are progressing at the right pace, with the right intentions and direction,” he affirmed.
The minister confirmed that India is in active negotiations with various countries, including the EU, the US, Peru, Chile, and Oman. “All discussions are moving forward in the right direction,” he noted, adding that India and the EU aim to finalize a free trade deal by the end of 2025.
Furthermore, Goyal criticized the UPA government for trade agreements made during its tenure, claiming they undermined India's manufacturing capabilities, specifically referencing the deal with the Association of Southeast Asian Nations (ASEAN).
“FTAs signed under PM Narendra Modi include those with Mauritius, Australia, EFTA countries, the UAE, and now the UK. Ongoing talks are with other developed nations. India is now establishing FTAs with countries that complement rather than compete with us,” he concluded.
Point of View
It is crucial to recognize the significance of the India-UK FTA. This agreement, viewed through a national lens, not only strengthens trade relations but also protects domestic industries. While past agreements may have posed challenges, the current approach under PM Modi emphasizes collaboration and mutual benefit. It's a pivotal moment for India's economic landscape.
NationPress
26/07/2025
Frequently Asked Questions
What is the India-UK free trade agreement?
The India-UK free trade agreement is a comprehensive pact that facilitates duty-free access for 99% of Indian exports to the UK, benefiting various sectors including agriculture, MSMEs, and professionals.
Who benefits from the India-UK FTA?
Farmers, businessmen, MSMEs, young professionals, and fishermen are among the key beneficiaries of the India-UK FTA.
How does the FTA protect Indian farmers?
The FTA excludes certain products like dairy, edible oils, and apples to safeguard the interests of domestic farmers.
What savings can Indian professionals expect?
Indian professionals working in the UK will save an estimated Rs 4,000 crore annually due to exemptions from social security taxes.
What other countries is India negotiating FTAs with?
India is actively negotiating FTAs with the EU, US, Peru, Chile, and Oman among others, aiming for beneficial trade relationships.
