The India-UK Free Trade Agreement (FTA), signed during Prime Minister Narendra Modi’s visit to the United Kingdom, marks a historic step forward in bilateral trade and economic cooperation. This deal offers India a wide range of benefits—expanding export markets, creating jobs, supporting professionals, and making imported goods more affordable.
One of the standout advantages is duty-free access for 99% of Indian exports to the UK. This includes labor-intensive industries such as textiles, marine products, leather, footwear, toys, sports goods, and gems and jewelry. Other sectors set to benefit include engineering goods, auto components, and organic chemicals. These industries, which support millions of jobs, are expected to become more competitive globally thanks to lower tariffs and easier market access.
The agreement also unlocks new opportunities for Indian professionals, particularly in the IT and services sectors. Over 60,000 Indian tech professionals working with firms like Infosys, TCS, and Wipro are expected to benefit annually from provisions that allow work in 35 UK service sectors for up to two years without needing a physical presence. Freelancers—such as chefs, yoga teachers, and musicians—will also enjoy easier entry into the UK job market. Moreover, a three-year exemption from UK social security contributions will save both workers and employers significant costs.
Startups and young professionals are another focus area. Indian graduates now have enhanced access to job opportunities in sectors like finance, management consulting, engineering, architecture, and IT—fostering innovation, global mobility, and entrepreneurship.
Indian consumers and industries are set to benefit from steep tariff reductions on a wide range of British goods. The average tariff on UK imports will drop from 15% to just 3%. Electric vehicles, previously taxed at 110%, will now be taxed at only 10% within a quota, making premium models significantly more affordable.
Luxury and lifestyle imports are also seeing price drops. These include British chocolates, biscuits, soft drinks, lamb, salmon, cosmetics, and medical devices. Scotch whisky will see its tariffs halved immediately, with further reductions over a 10-year period.
With an expected $34 billion boost to annual bilateral trade, the India-UK FTA not only strengthens economic ties but also enhances daily life for consumers and professionals in both countries.