India and the U.K. have finalized a Free Trade Agreement (FTA) after over three years of negotiations. Expected to be signed in three months and implemented in a year, the agreement is seen as a significant boost to bilateral trade, projected to double by 2030. The U.K. is India’s 16th largest trading partner, while India ranks 11th for the U.K.
Key benefits include tariff elimination on 99% of India’s exports and reduced duties on automobiles, whisky, and gin for the U.K. The agreement also secures a social security contribution exemption for Indian professionals in the U.K. for three years, enhancing professional mobility.
However, concerns remain for Indian agriculture and MSMEs, with fears of adverse impacts from cheaper imports and global competition. Issues like the U.K.’s Carbon Border Adjustment Mechanism (CBAM) and public procurement access have also sparked debates on long-term sustainability.