India, UK ink historic trade deal

London, Jul 24: India and UK signed a landmark free trade agreement Thursday, which, starting next year, will see 99 per cent of Indian exports enter UK duty-free, while reducing tariffs on British products such as cars and whisky.

- PRESS TRUST OF INDIA

The deal, which comes days ahead of the US moratorium on higher tariffs coming to an end, aims to double the $56 billion trade between the world's fifth and sixth largest economies by 2030.

While India has opened its market to various consumer goods, including chocolates, biscuits, and cosmetics, it will gain greater access to export products such as textiles, footwear, gems and jewellery, sports goods, and toys. Also, Indian companies, such as TCS and Infosys, operating in UK won't have to make social security contributions for up to three years for employees who move from India.

Commerce and Industry Minister Piyush Goyal and his British counterpart Jonathan Reynolds signed the agreement at a ceremony in UK Prime Minister's country residence Chequers. Under the pact, which has been termed Comprehensive Economic and Trade Agreement (CETA), tariffs on Scotch whisky will be reduced from 150 per cent to 75 per cent immediately, and further lowered to 40 per cent by 2035.

On automobiles, India will reduce import duties to 10 per cent over five years, down from the current rate of up to 110 per cent, under a gradually liberalised quota system.