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India Strikes Gold with UK Trade Deal: Cheaper Cars, Scotch, and Big Wins for Indian Professionals

India and the UK are set to finalise a significant Free Trade Agreement (FTA), anticipated during British Prime Minister Keir Starmer's visit. The FTA aims to eliminate tariffs on 99% of products, enhancing trade and economic ties. Indian sectors, particularly textiles and technology, will gain improved access to the UK market, while British goods like Scotch whisky and luxury cars will see reduced duties.
India-UK FTA Explained More Exports, Less Duty, and Brighter Futures

India-UK FTA Explained More Exports, Less Duty, and Brighter Futures

India and the United Kingdom (UK) have formulated a historic Free Trade Agreement (FTA), which is expected to be signed when the British Prime Minister Keir Starmer visits India this year. The agreement is expected to give a massive boost to Indian business as it would eliminate tariffs on 99% of products entering the UK market.
The trade deal will also facilitate the movement of Indian professionals to Britain for employment opportunities, without altering the UK's existing points-based immigration framework.

What Does the India-UK FTA Mean for India? Key Gains Explained

The India-UK Free Trade Agreement (FTA) opens up extensive market access across sectors, addressing nearly all of India’s export priorities. With tariff elimination on about 99% of product lines — representing almost 100% of trade value — the deal is poised to significantly boost bilateral trade.
Indian manufacturers, especially in labour-intensive and tech-driven sectors, stand to benefit from reduced tariffs and expanded export avenues. Key sectors include:
  • Textiles, garments, leather, footwear, toys, marine products, and sports goods – These will gain from full or phased-out duties, enhancing India’s global competitiveness.
  • Jewellery and gems, auto parts, engineering goods, and organic chemicals – These sectors will also enjoy lower barriers to entry in the UK market.

Job Creation & Services Boost

The agreement is expected to generate significant employment in India. It also expands service sector access, benefiting industries such as IT, finance, education, and professional services. Crucially, new UK visa pathways will now include Indian professionals like chefs, musicians, and yoga practitioners.

What India Gains — and What the UK Gets

British products entering India will see steep duty cuts:
  • Scotch whisky: Import duty drops from 150% to 75%, and later to 40%, making it much more affordable.
  • Luxury UK cars: Duties on brands like Jaguar and Land Rover will be slashed from over 100% to 10% under a quota-based system.
  • Other UK exports — including chocolate, biscuits, soft drinks, cosmetics, aerospace parts, lamb, medical devices, and salmon — will also benefit from reduced tariffs.

Wider Access for Indian Exports

Indian goods such as minerals, chemicals, plastics, rubber, textiles, electronics, auto components, furniture, arms/ammunition, and processed food will receive duty-free access to the UK — expanding India’s reach in a premium market.
Overall, the FTA is a win-win deal, promoting trade, creating jobs, and offering consumers on both sides better access to quality goods at lower prices.

Will Duty Concessions On Scotch whisky Impact Indian market?

The import duty cuts on Scotch whisky under the India-UK Free Trade Agreement will have minimal immediate impact on the domestic market, as they will be phased in over a 10-year period, a government official told PTI. Under the deal, tariffs on UK whisky and gin will drop from 150% to 75%, and eventually to 40% by the tenth year.
"The incremental increase in imports of Scotch whisky, therefore, would not significantly affect the domestic market. The tariff reduction on imports is over a longer period of time (10 years) and even after that it will attract significant customs duty (40 per cent)," the official said.
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