India and UK Sign Landmark Free Trade Agreement
India and the United Kingdom have signed a historic Comprehensive Economic and Trade Agreement (CETA) to boost their economies. The deal, formalised during PM Modi's visit to the UK, will eliminate tariffs on 99% of Indian exports, including textiles and agricultural products, while reducing duties on British cars and Scotch whisky. The pact aims to double the nearly $56 billion bilateral trade by 2030, create jobs, and facilitate greater mobility for Indian professionals in the UK.
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Key sectors expected to benefit include textiles, leather goods, electronics, software, automotive components, and agricultural products. The agreement will also boost exports of British cars, whisky, and various UK-made goods, while Indian products such as textiles, generic drugs, and food items will gain easier access to the UK market.
India will cut tariffs on 90% of UK products, notably reducing duties on British cars and halving Scotch whisky tariffs initially, with further reductions over a decade. The UK will eliminate duties on 99% of Indian exports, including textiles, leather goods, and pharmaceuticals, making Indian products more competitive in the UK.
The 'UK-India Vision 2035' is a strategic roadmap to deepen cooperation beyond trade, focusing on defense, technology, and climate action. It aims to enhance collaboration in innovation, security, and sustainability, reflecting a broader and long-term partnership between the two countries.
This is the UK's most comprehensive trade deal since Brexit and India's first such agreement with a European country. It covers goods, services, digital trade, intellectual property, and regulatory standards, setting a benchmark for future agreements and marking a new era in both nations’ trade policies.