NEW DELHI : The India-UK Free Trade Agreement (FTA) officially came into force on Tuesday, marking a major milestone in the economic relationship between the two countries. Calling it a landmark agreement, UK High Commissioner to India Lindy Cameron said the deal is expected to significantly boost trade, investment and business opportunities while laying the foundation for an even stronger partnership in the years ahead.
According to Cameron, the agreement builds on a bilateral trading relationship that was already worth 48 billion pounds. In the long run, it is expected to increase annual bilateral trade by 25 billion pounds and add around 5 billion pounds to the UK’s GDP every year.
WIDER MARKET ACCESS FOR BUSINESSES
The agreement provides duty-free or lower-tariff access for a large share of goods traded between the two countries. Cameron said around 99% of Indian goods entering the UK and 90% of UK products exported to India will either become tariff-free or attract lower duties.
She described the agreement as one of the most comprehensive trade deals negotiated by the UK, covering 30 chapters that deal with goods, services, government procurement and several other areas of economic cooperation.
The High Commissioner said the agreement would create opportunities across a wide range of sectors while making several British products more affordable for Indian consumers.
LOWER IMPORT DUTIES ON SEVERAL UK PRODUCTS
Among the key changes, import duty on Scotch whisky has been reduced from 150% to 75%. Import duty on premium UK cars will also fall from 110% to 10%.
According to Cameron, consumers in India are also expected to benefit from lower prices on a range of British products, including beauty and cosmetic items and sports goods.
She added that the agreement also opens opportunities in sectors such as renewable energy, with easier trade in turbines, generators and related equipment. Indian animation studios and game developers are also expected to benefit from stronger protection of intellectual property rights while working with UK partners.
MORE OPPORTUNITIES FOR BUSINESSES AND PROFESSIONALS
The agreement also aims to improve access to government procurement markets. Cameron said UK companies will find it easier to participate in India’s procurement market, which is valued at around £38 billion annually.
Professional mobility has also been addressed under the agreement. Engineers, consultants and professionals providing various services are expected to find it easier to work across both countries.
She described the nearly 2,000-page treaty as a comprehensive agreement that goes beyond a traditional trade deal.
DOUBLE CONTRIBUTION CONVENTION COMES INTO EFFECT
Alongside the FTA, the Double Contribution Convention (DCC) has also come into force.
Cameron explained that the DCC is a separate agreement that prevents businesses and employees on temporary overseas assignments from paying social security contributions in both countries at the same time.
A MILESTONE AFTER LENGTHY NEGOTIATIONS
Speaking about the negotiations, Cameron acknowledged that the discussions were challenging but said both sides remained committed to reaching a comprehensive agreement rather than settling for a limited one.
She said the two negotiating teams worked through several difficult issues to ensure that the final agreement covered a broad range of sectors and delivered benefits for both countries.
On the UK’s Carbon Border Adjustment Mechanism (CBAM), Cameron said it is intended to support the UK’s industrial decarbonisation efforts and is not designed as a trade measure.
A FOUNDATION FOR STRONGER TIES
Describing India as a future global economic powerhouse, Cameron said the agreement reflects the high level of trust between the two countries.
She called the India-UK FTA the “new gold standard” for free trade agreements and said it should be viewed as the beginning of a deeper partnership rather than its final destination.
According to her, the agreement is not the ceiling of India-UK ambitions but the floor on which both countries can build stronger cooperation across trade, services, investment and several emerging sectors.
