16 May 2025 : A recent free trade agreement (FTA) has been reached between India and Britain. Following this, British whiskey, luxury brand clothing and accessories, medicines, electronic devices, and many other items are expected to become cheaper. But the question remains: when will these items be available at lower prices? An official from the Ministry of Commerce has provided an update on this free trade agreement. He said that the FTA between India and Britain, signed on May 6, is expected to be finalized soon.
Under this agreement, taxes on the export of leather goods, footwear, and textiles from India will be removed, while the import of whiskey and cars from Britain will become cheaper. The aim of this initiative is to increase trade between the two countries to $120 billion by 2030.
Agreement reached after 3 years of talks
Notably, both countries reached this agreement after three years of negotiations. Under this agreement, 99% of Indian goods entering the UK market will have duties reduced to zero, and Indian workers will be allowed to travel to Britain to work under the UK’s points-based immigration system without any changes. Many tariffs on goods and services between the two countries will be reduced or eliminated under the free trade agreement. The official said, “The agreement is expected to be signed soon.” The agreement is currently going through legal procedures, which are likely to be completed within about three months. Negotiations for this agreement began in January 2022. Bilateral trade between India and the UK is expected to increase to $21.34 billion in 2023-24, up from $20.36 billion in 2022-23.
Summary:
The new UK-India Free Trade Agreement reduces import duties on British whisky, gin, clothing, and footwear, making these products more affordable and boosting bilateral trade prospects.