Commerce minister Piyush Goyal said that the deal provides duty-free access for about 99% of Indian exports.
India and the United Kingdom signed a historic free trade agreement on Thursday during Prime Minister Narendra Modi’s visit to the UK, where he met his British counterpart Keir Starmer.
This free trade deal, which was under negotiation for around three years, will give a much-needed boost bilateral trade between the two countries by around $ 34 billion annually.
The deal was signed by commerce minister Piyush Goyal and his British counterpart Jonathan Reynold in presence of the Prime Ministers of both the countries.
With this landmark deal, India is set to see tariff slashes on several products imported from UK and the export businesses in India will also benefit immensely.
Commerce minister Piyush Goyal said that the deal provides duty-free access for about 99% of Indian exports, which will unlock “nearly $23 billion in opportunities for labour-intensive sectors, marking a new era for inclusive and gender-equitable growth.”
Here’s what gets cheaper with this trade deal
- People and industries in India will be able to access several products made and imported from the United Kingdom, such as medical devices and aerospace parts, at much affordable prices.
- According to the United Kingdom, Indian customers will also have better access to British products such as soft drinks, cosmetics and also cars. This will be possible because India’s average tariff on UK products will drop from 15 per cent to 3 per cent after the FTA kicks in.
- With this trade deal, it will be easier for British firms to also export whisky to India with tariffs slashed in half, reduced immediately from 150% to 75% and then dropped even further to 40% over the next ten years – giving the UK an advantage over international competitors in reaching the Indian market. Nik Jhangiani, Interim Chief Executive of Diageo, said, “This agreement marks a great moment for both Scotch and Scotland, and we’ll be raising a glass of Johnnie Walker to all those who have worked so hard to get it secured.”
- Also, the trade deal makes it more affordable for Indians to live in the UK. Indian firms and freelancers will have access to 36 service sectors in the UK with no ‘Economic Needs Test’.
- Indian professionals can work in 35 UK sectors for 24 months, even without an office in the country.
- Indian professionals will be exempt from UK social security payments for three years under this deal.
About The Author
