India and UK Sign Landmark Free Trade Agreement to Boost Bilateral Trade

• 8 May 25

India and UK Sign Landmark Free Trade Agreement to Boost Bilateral Trade

India and the United Kingdom have officially signed a comprehensive Free Trade Agreement (FTA), marking a pivotal milestone in their economic relationship. Finalized after nearly three years of negotiations, the deal is expected to double bilateral trade by 2030, eliminate or reduce tariffs across multiple sectors, and enhance mobility for professionals between the two nations.

Key Highlights:

• Tariff Elimination: Up to 90% of UK exports to India—including cars, Scotch whisky, and medical devices—will see tariffs eliminated over the next decade. In return, 99% of Indian goods exported to the UK will enjoy duty-free access.

• Professional Mobility & Services Access: The agreement streamlines professional visa quotas and recognitions, allowing 1,800 Indian professionals per year to work in the UK under specific skilled categories. The deal also opens up access for UK service providers in India’s growing economy.

• Social Security Relief: Indian professionals on temporary secondments to the UK will be exempt from paying National Insurance contributions for up to three years—helping prevent dual taxation and reduce costs for Indian employers.

Implications for Businesses:

This agreement opens new doors for companies in sectors such as automotive, finance, fashion, alcohol, pharmaceuticals, and technology. Businesses on both sides are expected to benefit from reduced trade barriers, improved regulatory cooperation, and smoother movement of talent and services.

As India strengthens its global economic footprint, such agreements not only foster bilateral growth but also reinforce the country’s appeal as a strategic trade and talent partner.

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