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India and the U.K. on Tuesday (May 6, 2025) sealed an ambitious free trade deal along with a double contribution convention with Prime Minister Narendra Modi saying that the landmark pacts will catalyse trade, investment, growth and job creation in both the economies.
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India and the U.K. on Tuesday (May 6, 2025) sealed an ambitious free trade deal along with a double contribution convention with Prime Minister Narendra Modi saying that the landmark pacts will catalyse trade, investment, growth and job creation in both the economies.
Following are the highlights of the India-U.K. free trade agreement and the Double Contribution Convention pact.
Highlights of the India-U.K. free trade agreement
99% Indian exports to benefit from zero duty in U.K. market.
Indian import duty will be slashed, locking in reductions on 90% of tariff lines, 85% of these becoming fully tariff-free within a decade.
India reducing tariff for: whisky, medical devices, advanced machinery, and lamb, making U.K. exports more competitive
Goods with reduced import duties for Indian consumers: cosmetics, aerospace, lamb, medical devices, salmon, electrical machinery, soft drinks, chocolate and biscuits
Products with cheaper prices for British shoppers: clothes, footwear, and food products including frozen prawns
Automotive tariffs will go from over 100% to 10% under a quota
Three-year exemption from social security payments for Indian employees working in the U.K.
Export opportunities for labour-intensive sectors such as textiles, marine products, leather, footwear, sports goods and toys, gems and jewellery, engineering goods, auto parts and engines, and organic chemicals
Mr. Modi made the announcement on the agreements after a phone conversation with his British counterpart Keir Starmer.
“In a historic milestone, India and the U.K. have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention,” Mr. Modi said in a social media post.
Published – May 06, 2025 08:04 pm IST
