London/New Delhi, May 6, 2025 —
The United Kingdom and India have officially signed a landmark Free Trade Agreement, marking a significant advancement in bilateral economic ties. This historic deal is expected to boost trade by £25.5 billion annually by 2040 and increase the UK’s GDP by £4.8 billion over the next 15 years.
Key Highlights of the Agreement:
Tariff Reductions on British Exports:
India will gradually reduce tariffs on 90% of UK goods. This includes a major cut on whisky duties from 150% to 40% over 10 years and a reduction in car import duties from over 100% to just 10%.
Duty-Free Access for Indian Exports:
The UK will remove tariffs on 99% of Indian exports, benefiting industries such as textiles, food products, gems, and jewelry. This will enhance India’s global export competitiveness.
Enhanced Services and Mobility:
The agreement opens up India’s services market for British companies and streamlines visa access for Indian professionals like chefs, artists, and yoga instructors for short-term stays.
Social Security Accord:
A special provision ensures that Indian professionals working in the UK temporarily will be exempt from paying social security contributions in both countries for up to three years.
This FTA symbolizes a deepening partnership between two of the world’s fastest-growing economies and is expected to create new opportunities for businesses, workers, and investors on both sides.
