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India and UK Seal Free Trade Agreement to Boost Trade by $34 Billion

Ministers signed the pact in London with the UK set to ratify first followed by Indian approvals.

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PM Modi UK Visit Live Updates: FTA, UK-India Vision 2035 high on agenda
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Overview

  • The deal cuts 90% of tariffs on UK exports to India and grants zero duties on 99% of Indian exports, covering nearly all trade value.
  • The agreement is projected to raise bilateral trade by about $34 billion annually and drive economic gains in both countries.
  • It includes provisions for enhanced professional mobility and a Double Contribution Convention allowing Indian workers in the UK to pay social security in India for up to three years.
  • Tariffs on British goods such as Scotch whisky, cars, cosmetics and medical devices will be sharply reduced while Indian textiles, leather and seafood gain duty-free access to the UK.
  • Alongside the FTA, leaders unveiled the UK-India Vision 2035 roadmap to deepen cooperation on defence, climate action, education and technology.