Archive · 24 Jul 2025
UK-India Trade Deal: Sectors Set to Benefit From FTA
India and the UK are making a deal to trade goods with each other more easily!
This means that most products from India going to the UK will have no taxes, making them cheaper.
This should help businesses in India that make things like clothes, leather goods, and medicine.
Farmers can also sell more fruits and vegetables to the UK.
The deal makes it easier and cheaper for these businesses to sell their products in the UK, which will boost their sales and help the economy.
India and the UK are set to sign a Free Trade Agreement (FTA), eliminating tariffs on approximately 99% of tariff lines.
Key sectors like textiles, leather, agriculture, marine products, and pharmaceuticals are expected to benefit from the FTA.
The agreement aims to boost bilateral trade, reduce compliance costs, and enhance competitiveness for Indian exporters.
MSMEs will gain duty-free access in labor-intensive sectors, enhancing their global competitiveness.
The FTA includes protections to prevent unjustified trade restrictions from Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS) measures.
- Who
- India and the United Kingdom.
- What
- The signing of a Free Trade Agreement (FTA) between India and the United Kingdom.
- When
- Agreement set to be signed on Thursday.
- Where
- United Kingdom.
- Why
- To boost bilateral trade by eliminating tariffs and reducing trade barriers.
Stakeholders
Beneficiaries
Increased Trade
Stakeholders
Indian exporters who aim to expand the footprint in the UK.
Beneficiaries
British consumers who will have access to competitive goods.
- Agreement Type
- Comprehensive Economic and Trade Agreement (CETA/FTA)
- Tariff Elimination
- Approximately 99% of tariff lines
- Textile Sector
- Zero-duty market access for 1,143 tariff lines
- Leather Sector
- Expected to gain at least 5% market share in UK
- Agriculture
- Expected to raise exports by over 20% in next three years
- Engineering Goods
- Exports could nearly double in five years