India and the United Kingdom have officially signed a historic Free Trade Agreement (FTA) that is expected to transform trade and job opportunities in both countries.
This major deal brings big benefits for Indian exports. Nearly 99% of India’s exports to the UK will now enjoy zero-duty access, making Indian goods much cheaper and more competitive in the British market.
Sectors like textiles, leather, footwear, marine products, toys, gems and jewellery, engineering goods, and auto parts are among the biggest winners. This move is expected to increase production and create more jobs, especially in labor-intensive industries.
The agreement also covers services. IT, finance, education, and other professional services will now have smoother access to the UK market. This will open up more opportunities for Indian service providers and skilled professionals.
A big highlight of the deal is a three-year exemption from social security payments in the UK for Indian workers and their employers. This means Indian professionals working in the UK can save a significant amount of money and become more competitive in the global job market.
“In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies.”
Narendra Modi, Prime Minister, Government of India
“This Agreement sets a new benchmark for equitable and ambitious trade between two large economies. It will benefit Indian farmers, fishermen, workers, MSMEs, startups and innovators. It brings us closer to our goal of becoming a global economic powerhouse. This FTA is not only about goods and services, but also about people, possibilities and prosperity.”
Piyush Goyal, Union Minister for Commerce and Industry, Government of India
With around USD 60 billion already being traded between India and the UK, this deal aims to double that number by 2030.
The FTA also promises better access for Indian professionals, including business visitors, investors, chefs, yoga teachers, and artists.
India and the UK have also agreed to promote good business practices and improve transparency, aligning with India’s ongoing domestic reforms to ease doing business.
