A New Era of Trade: UK and India Seal £25.5 Billion Free Trade Deal to Slash Tariffs and Boost Growth

The United Kingdom and India have agreed on a historic Free Trade Agreement (FTA) valued at £25.5 billion, which is set to redefine economic relations and bring tangible gains for consumers and businesses in both nations. Following are the major highlights:

The FTA is expected to increase bilateral trade by £25.5 billion a year, UK GDP by £4.8 billion, and wages by £2.2 billion annually in the long term.

Tariffs will be cut on 90% of the goods that are traded, with 85% of them becoming entirely tariff-free within a decade.

Instant cuts include reducing India's duties on UK gin and whisky by half, with additional cuts in the coming decade.

Tariffs will also fall on British goods such as cars, cosmetics, pharmaceutical devices, aerospace parts, lamb, salmon, chocolate, and biscuits.

Indian exporters will have 99% of their products entering the UK market duty-free, making them more competitive in textiles, footwear, and foodstuffs.

The agreement places quotas on automobile imports and opens up new business prospects for British companies to win contracts in India.

Indian professionals will have less difficult access to the UK labor market, although the UK's points-based immigration system is unaffected.

The agreement is likely to spur investment, innovation, and employment, making both economies more robust in the face of global trade uncertainties.

Sources: Reuters, Al Jazeera, Times of India