India-UK FTA: A Comprehensive Overview of Trade Benefits and Tariff Adjustments

The recently concluded India-UK Free Trade Agreement promises to revolutionize trade relations between the two nations. The agreement, solidified in May and formally signed during Prime Minister Modi’s UK visit, seeks to elevate the bilateral trade volume to $120 billion by 2030. The FTA entails strategic tariff adjustments across various sectors. For instance, a majority of Indian exports will enjoy zero-duty access to the UK market. Simultaneously, UK exports to India will experience significant tariff reductions. A detailed analysis of the agreement reveals specific changes. Marine products, gems and jewelry, electrical machinery, leather/footwear, processed food, and textiles will be subject to zero duties. The deal also paves the way for increased agricultural trade, opening doors for Indian exports such as tea, mangoes, grapes, spices, and seafood. The agreement also addresses tariffs on items like whisky, gin, and automobiles, with phased reductions expected over time.