Landmark Deal

India has finally concluded the free trade agreement with the UK that is set to open up trade and market opportunities for both the countries. It has also stepped up negotiations with the US and the EU

- SURABHI

FOLLOWING THREE YEARS of talks and a renewed resolve this year because of trade-related uncertainties, India and the UK have concluded the free trade agreement (FTA) that aims to double bilateral trade to $120 billion by 2030.

The deal, seen as a precursor to, and most likely a model for, similar agreements with the US and the European Union, allows both India and the UK to expand their exports with greater market access.

As part of the FTA, India will slash tariffs on key products such as whisky, automobiles, cosmetics and medical devices, locking in reductions on 90% of tariff lines. India will also get duty free or zero-rated access for 99% of its exports to the UK, as well as easing of restrictions on services trade that will enable greater mobility of skilled professionals and respite from social security contributions.

Both countries have also chosen to protect their interests in certain areas. Sensitive products across agriculture and dairy like apples as well as certain industrial goods like smartphones, optical fibres and silver and diamond have been excluded and no duty benefits will be provided by India to the UK. Similarly, it was decided that the FTA would not address issues such as short-term work visas for Indian students.