After over three years of negotiations, the United Kingdom and India have signed a comprehensive free trade agreement, hailed as the most significant post-Brexit trade deal for the UK. The agreement aims to boost bilateral trade by £25.5 billion annually by 2040 and is expected to increase the UK economy by £4.8 billion per year.The Guardian+1The Sun+1
Key provisions include substantial tariff reductions: India's tariffs on British whisky and gin will decrease from 150% to 75%, with plans to further reduce them to 40% over the next decade. Tariffs on British cars will drop from over 100% to 10%, benefiting manufacturers like Jaguar and Land Rover. British exports such as cosmetics, medical devices, and aerospace parts will also see reduced tariffs. The Sun+1Reuters+1Reuters
Conversely, 99% of Indian exports, including textiles, food products, and jewelry, will face no import duties in the UK. The deal also includes provisions for services trade and modest changes to business mobility, allowing Indian professionals like chefs and yoga instructors easier access to the UK. Financial Express+2AP News+2The Guardian+2
While the agreement has been praised for its economic potential, it has faced criticism within the UK over provisions such as exemptions from national insurance contributions for temporarily seconded Indian workers. Critics argue this creates an unfair tax system, but the UK government defends it as standard international practice.
0 Comments