Synopsis:
India-UK Free Trade Deal signed with major benefits for both sides — cheaper British goods in India, new job opportunities for Indian professionals in the UK, and reduced tariffs across industries.
Free Trade Deal—that’s the headline both countries were waiting for. On Thursday, India and the United Kingdom formally signed a landmark agreement that promises to reshape their bilateral trade landscape. With Indian Prime Minister Narendra Modi in London, the signing took place in the presence of UK Prime Minister Keir Starmer, as Indian Commerce Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds put pen to paper. For Britain, this is the most significant trade deal since it exited the European Union in 2020. It opens up a corridor of annual trade worth $34 billion between the two nations.
What India Gains from the Free Trade Deal
India comes out of this deal with several wins — both economic and strategic. British-made goods such as medical devices, aircraft parts, chocolates, cosmetics, soft drinks, and cars will become significantly cheaper in the Indian market. The average import tariff, which stood at 15%, will now drop to just 3%. For electric vehicles, the change is even more dramatic: from 110% duty to 10%.
The Free Trade Deal also slashes the import duty on whisky from 150% to 75%, with a gradual reduction to 40% over the next decade — a big win for British exporters and Indian consumers alike.
Beyond goods, the agreement opens doors for Indian tech professionals. Up to 60,000 skilled workers from firms like TCS, Infosys, Wipro, Tech Mahindra, and HCL can now work in the UK without needing a local office setup, across 35 sectors, for two years. Plus, Indian workers will be exempt from British social security payments for up to three years.
Subheading: What Britain Gets in Return
On the flip side, the UK secures access to one of the world’s fastest-growing markets. Tariffs on 90% of British exports to India will be eliminated or significantly reduced, giving UK businesses a crucial cost advantage. British companies will now be able to bid for Indian government contracts worth over ₹4 lakh crore annually — that’s access to more than 40,000 tenders a year.
The deal is expected to create over 2,200 new jobs in the UK and increase workers’ earnings by £220 million annually. And for British households, the benefits are direct: lower prices on clothing, footwear, and a variety of food products.
This Free Trade Deal is more than just a diplomatic handshake. It’s a calculated move to deepen economic ties, boost job creation, and make life a little easier — and a lot cheaper — for consumers and businesses on both sides.
