Cars, whisky, and medical equipment: what will become cheaper with the FTA agreement between India and the UK?
During PM Modi’s UK visit, India and Britain signed a historic free trade agreement promising tariff relief, cheaper imports, expanded services, and social security exemptions, boosting bilateral trade and investment opportunities."
International News: India and the United Kingdom signed a historic Free Trade Agreement (FTA) during Prime Minister Narendra Modi's recent visit to the UK. On this occasion, he met British Prime Minister Keir Starmer. This agreement has been reached after three years of negotiations, which will take the trade relations between the two countries to new heights. Through this agreement, India-UK bilateral trade is expected to increase to about $34 billion every year.
Signing of the agreement
This historic agreement was signed by India's Commerce Minister Piyush Goyal and Britain's Commerce Minister Jonathan Reynolds in the presence of both the prime ministers. Piyush Goyal said that this agreement provides duty-free access to 99% of India's exports, which will benefit labor-intensive sectors worth about $23 billion. This agreement is considered an important step towards inclusive development and gender equality.
On which things will you get a benefit?
After the agreement, Indian consumers and industries will now be able to get products imported from Britain, such as medical equipment, aerospace parts, cosmetics, soft drinks, and cars, at cheaper prices. British products in India will now be taxed at only 3% instead of 15% on average, which will lead to a huge reduction in the price of these goods.
Whiskey and Scotch will get a boost
This agreement will also prove to be very beneficial for Britain, especially for the liquor industry. It will become easier for British companies to export whiskey to India, as the import duty will be reduced from 150% to 75%, and gradually it will come down to 40%. Diageo Company's interim CEO Nick Jhangiani called this occasion historic for Scotland and the Scotch industry.
India will get an edge in the service sector
This agreement is not limited to the trade of goods but will also provide great relief to India in the service sector. Indian companies and freelancers will get access to 36 service sectors of Britain without an 'economic need test.' Also, Indian professionals will be able to work in 35 sectors in Britain for 24 months without a local office.
Social Security exemptions
Under this agreement, Indian professionals will be exempted from social security payments in Britain for three years, which will significantly reduce their expenses.
