Archive · 23 Jul 2025
India-UK FTA to Boost Trade, Reduce Duties, and Streamline Visas
India and the UK are making a big trade deal called a free trade agreement (FTA).
This means it will be easier for companies in both countries to buy and sell goods and services.
Almost all Indian products will be able to go to the UK without extra taxes, and India will lower taxes on many UK products, like cars and drinks.
The agreement also helps professionals, such as engineers and accountants, by making it easier for them to work in the UK.
Plus, a new rule called DCC makes sure that people only pay social security taxes in one country, which saves them money and is especially helpful for those in the IT industry.
India and the UK will sign a free trade agreement (FTA) to boost bilateral trade.
The agreement will allow 99% of Indian exports to enter the UK duty-free.
India will reduce duties on 90% of UK imports, including cars and beverages.
The FTA streamlines visa processes for professionals in various sectors.
A Double Contributions Convention (DCC) will be implemented to streamline social security.
- Who
- Commerce and industry minister Piyush Goyal and UK’s secretary of state for business and trade Jonathan Reynolds will sign in the presence of prime minister Narendra Modi and UK premier Keir Starmer.
- What
- A free trade agreement (FTA) and a Double Contributions Convention (DCC) will be signed to boost trade between India and the UK.
- When
- The agreement will be signed on Thursday.
- Where
- Between India and the UK.
- Why
- To boost bilateral trade and give a major fillip to their bilateral trade.
Benefits for Indian Exporters
Considerations for the UK
Market Access
Benefits for Indian Exporters
Reduced tariffs and increased market access for products like textiles, footwear, and marine products
Considerations for the UK
Some sensitive items and sectors (dairy, sugar) excluded from liberalization, and agricultural tariffs not reduced.
- Agreement Type
- Comprehensive Economic and Trade Agreement (CETA)
- Indian Exports Duty-Free
- 99%
- UK Import Duty Reduction by India
- 90% of tariff lines
- Duty Reduction on Cars
- To 10% from over 100% in stages
- Duty Reduction on Beverages
- To 75% initially, then to 40% in 10 years
- India's Service Exports to UK (2024)
- $ 19.90 billion
- India's Service Imports from UK (2024)
- $ 13.67 billion