Archive · 2 Jun 2025
India-UK FTA: Landmark Trade Deal and Social Security Agreement
India and the UK have made a big trade deal!
This means it's easier for companies in both countries to buy and sell things to each other.
They want to make trade twice as big by 2030.
Also, workers won't have to pay social security taxes twice if they work in both places.
Many products, like clothes and IT services, can now be sold to the UK without extra taxes.
There are only a few electric cars that can be imported without a tax, and it will take a while for the tax on Scotch whisky to go down.
India and the UK have finalized a free trade agreement (FTA) to boost bilateral trade.
The FTA aims to double trade between the two countries to $120 billion by 2030.
A 'double contribution convention' eliminates double social security payments for workers in both countries.
Tariffs on 99% of Indian exports will be removed, benefitting sectors like textiles and IT.
Duty-free import quotas are limited for electric vehicles, while tariffs on Scotch whisky imports will be reduced over time.
- Who
- India and the United Kingdom.
- What
- A Free Trade Agreement (FTA) and a double contribution convention.
- When
- Negotiations concluded in May 2024.
- Where
- The UK and India
- Why
- To increase trade and economic cooperation.
India's Perspective
UK's Perspective
Tariff Benefits
India's Perspective
India benefits from reduced tariffs on exports, enhancing competitiveness for key sectors like apparel, auto parts and chemicals.
UK's Perspective
The UK also benefits from India's tariff reductions.
Electric Vehicle Imports
India's Perspective
India has set quotas to manage the import of EVs, taking care of industry sensitivity.
UK's Perspective
The UK can still export electric vehicles to India, but with limited numbers.
- Deal finalized
- May 2024
- Targeted Bilateral Trade
- $120 billion by 2030
- Percentage of Indian exports with tariff-free access
- 99%
- Scotch Whisky Tariff Reduction Period
- 10 years
- Key Benefiting Sectors
- Textiles, IT services, and auto parts
Sources
India poised for export surge to UK as FTA tariff advantages take hold
Duty-free quota on British EVs capped at a few thousand under FTA with India: Official
India-UK seal historic FTA and double contribution convention; PM Modi, Keir Starmer react
India-UK FTA | The double contribution convention explained