India and the UK have finally sealed the deal. On Thursday, during PM Modi’s visit to Britain, both countries will sign the India-UK Free Trade Agreement — a major step after three years of talks.
This is India’s first big trade pact with a developed country in over ten years. Once legal checks are done in the UK Parliament and India’s Cabinet, it will come into force, likely within a year.
What’s In It for India?
India has made some big moves here. The deal brings down import duties on many British products:
- Scotch & Gin: Taxes will fall from 150% to 75% right away, then down to 40% in 10 years.
- Cars: UK cars that used to face over 100% duty will now come in under a quota, at just 10%.
- Other Items: Cosmetics, chocolates, salmon, biscuits, and medical tools will get cheaper.
But India isn’t just giving. It’s also winning big.
What India Gets in Return
Here’s the key benefit: 99% of Indian goods will get duty-free access to the UK market. That means better sales, more jobs, and stronger exports.
Industries that will gain the most include:
- Textiles and Apparel (Welspun, Arvind)
- Footwear (Bata, Relaxo)
- Auto Parts & EVs (Tata Motors, Mahindra Electric)
- Engineering Goods (Bharat Forge)
- Gems, Furniture, Chemicals, Sports goods
Services, Jobs & Professional Wins
The India-UK Free Trade Agreement isn’t just about goods.
- Work Visas: Indian chefs, yoga trainers, musicians, and service workers will get short-term entry to work in the UK.
- Social Security: Indians working in the UK won’t need to pay into UK social schemes for 3 years — saving around ₹4,000 crore every year.
- Government Deals: British companies can now bid on big government contracts in India worth ₹2 billion or more.
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Who Else Benefits?
UK firms like Diageo (Scotch) and carmakers like Aston Martin and Jaguar Land Rover (owned by Tata) get better entry into India.
British consumers also gain from cheaper Indian clothes, shoes, and food.
The UK expects to add £4.8 billion to its GDP every year thanks to this deal.
Investment & Friendship
- Indian firms in the UK: Over 1,000 companies, ₹1.73 lakh crore invested, 1 lakh+ jobs created.
- UK in India: ₹3.11 lakh crore invested so far, 6th biggest investor in India.
This deal makes that bond even stronger.
The Bigger Picture
This isn’t just about money. It’s about global respect. India is showing it can negotiate on equal terms with global powers. For young Indians, it opens up trade, travel, and jobs abroad.
As PM Modi meets UK PM Keir Starmer, they’ll also talk about education, health, security, and clean energy.
Next stop for Modi? Maldives on July 25.
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