India UK FTA Deal: Cars, whiskey and clothes cheaper, 99% of Indian goods will be sold in UK without tax, know the prices of which things will change

Business Desk – India UK FTA Deal: The Free Trade Agreement (FTA) between India and Britain has come into effect from Wednesday, July 15. With this, luxury cars, Scotch whiskey, gin, branded clothes, footwear, cosmetics and many other products coming from Britain will become cheaper in India. At the same time, 99% of Indian goods will now be able to reach UK without any import duty (zero tariff). The government estimates that with this agreement, trade between the two countries will double to $120 billion by 2030.

British High Commissioner said- this is a historic moment

Before the implementation of the FTA, Britain’s High Commissioner to India Lindy Cameron wrote on X that this agreement, which will come into effect from July 15, is a historic moment for the modern India-UK partnership. According to him, this will start a new phase of development in the economies of both the countries.

What will be cheaper in India?

Under this agreement, the average import duty on goods coming from UK will be reduced from 15% to around 3%. In the next 10 years, 85% of British products will become completely tariff free. The biggest impact will be on Scotch whiskey and gin, which were currently taxed at 150%. This will reduce to 75% and will come down to 40% in 10 years. With this, Scotch worth Rs 5000 can be bought for around Rs 3500.

Duty on luxury cars like Jaguar Land Rover and Rolls-Royce will also be reduced from 100% to 10% under the quota system, which could reduce their prices by 20-30%. Apart from this, salmon, lamb, chocolate, biscuits, soft drinks, cosmetics, medical devices, fashion products, homeware, furniture and electronics will also be cheaper than before.

Which sectors of India will benefit the most?

The textile sector will be the biggest beneficiary of this deal. The 8-12% tax imposed in UK on Indian clothes and home textiles will be completely abolished. Export hubs like Tiruppur, Surat and Ludhiana are expected to get big benefits from this.

Now there will be no import duty in UK on jewellery, leather bags and shoes, which will benefit both MSMEs and big brands. The abolition of taxes on engineering goods, machinery and auto parts will also give a boost to manufacturing hubs like Pune, Chennai and Gurugram.

Indian pharma companies will get easier registration for generic medicines and easier access to NHS. At the same time, exports of Basmati rice, shrimp, tea, spices, agrochemicals, plastics and specialty chemicals are also expected to increase. Both the countries will also jointly invest and develop technology in green energy, solar, green hydrogen and EV sectors.

What will India’s economy get?

After implementation of FTA, 99% of India’s products will be exported to UK without tariff. Textile, leather, engineering, marine products, gems and jewelery and pharma sectors will benefit the most from this. The government estimates that India’s exports to the UK could reach $29 billion by 2030. This agreement is likely to increase employment in textile and labour-intensive sectors. About 6 crore MSMEs will get new markets, while British investment in IT, financial services and green technology will also increase.

When was the agreement made?

Negotiations on FTA between India and Britain started on 13 January 2022. After about three and a half years and 14 rounds of negotiations, on July 24, 2025, Union Commerce Minister Piyush Goyal and British Trade Minister Jonathan Reynolds signed this agreement in the presence of Prime Minister Narendra Modi and British Prime Minister Keir Starmer.

With which countries has India made such agreements?

India has already signed free trade agreements with Sri Lanka, Bhutan, Thailand, Singapore, Malaysia, South Korea, Japan, Australia, UAE, Mauritius, ASEAN and EFTA countries. Now India’s focus is on similar trade agreements with the European Union (EU) and America (US).