Overview

• Negotiations for the India-UK Free Trade Agreement concluded on May 6, 2025, after three-and-a-half years of talks, with legal vetting and ratification processes now underway.
• The agreement eliminates import duties on 99% of Indian tariff lines into the UK, significantly benefiting sectors like textiles, leather, gems, and auto components.
• India has safeguarded sensitive sectors, excluding agricultural products like dairy and apples, and offering limited concessions on UK beer while maintaining duties on British wines.
• Key provisions include phased tariff reductions on UK Scotch whisky and automobiles, with duties on whisky dropping from 150% to 40% over ten years and auto tariffs reduced to 10% under quotas.
• The pact includes mobility commitments for Indian professionals and a three-year social security exemption for Indian workers in the UK, enhancing competitiveness in the services sector.