India-UK FTA: Free trade agreement between India and UK comes into effect from today; Whiskey – cars, clothes and footwear will be available cheap, ‘zero’ tariff on 99% goods.

With the implementation of this agreement, the way has been cleared for Indian exporters to get duty-free access to the British markets. This is not only a big booster dose for the Indian economy, but also reflects India’s growing dominance in global trade.

The British government believes that the Free Trade Agreement with India will add 4.8 billion pounds to the British economy and will see an increase of 2.2 billion pounds in real wages. On the other hand, the Indian government says that this deal will give a strong boost to Indian exports. That means this FTA will prove to be a booster for the economy of both the countries. With this, bilateral trade is likely to double to $120 billion by 2030.

Before the implementation of this trade agreement, UK High Commissioner to India Lindy Cameron wrote on the social media platform X, ‘The countdown has started! UK and India have agreed that the free trade agreement will come into force from July 15. This is a historic moment for the modern UK-India partnership. This will usher in a new era of growth for both the economies. Let us tell you that after 14 rounds of talks in about 3 years, on July 24, 2025, Commerce Minister Piyush Goyal and British Trade Minister Jonathan Reynolds signed this agreement in the presence of PM Narendra Modi and British PM Keir Starmer.

What are the benefits of FTA to India?
This free trade agreement of India with Britain can prove to be a beneficial deal for Indian exports and Indian workers in many ways. From Scotch-whisky to super luxury cars coming from Britain will be cheaper, then India is going to get a big market. Once the UK-India FTA is implemented, the 150% tariff applicable on British Scotch-Whiskey in India will be reduced to 40% in several installments. That means its price will reduce by 110%. Apart from this, automobile tariff will be reduced from 100% to just 10%. With this, cars like Land Rover, Jaguar, Rolls Royce and Aston Martin, Defender will be available at affordable prices. The 22% tariff on British beauty products will be reduced or eliminated.

These British goods will have tariff free entry in India

With this, 99% of India’s products will get duty free access in the UK market. These include clothes, shoes and some food products. There is a duty of 12% in UK on textile garments. There is a duty of 8% on chemicals and 10% on base metals, but now with this deal, 99% of the goods will come under ‘0%’ in UK.

With the implementation of FTA, while trade between India and Britain will increase, there is also an expectation of a surge in investment. UK companies can invest more in India, which will boost manufacturing and infrastructure growth. Apart from this, opportunities will increase in Britain for Indian IT companies, engineers, architects and other professionals.

These goods will be duty free in Britain

PM Modi gifts Melody Toffee to Meloni, Italy’s Prime Minister jumps with joy

Follow the LALLURAM.COM MP channel on WhatsApp