India–UK Free Trade Agreement (FTA)
The Prime Minister of India is set to visit the UK to formally sign the Free Trade Agreement (FTA) with the UK Prime Minister. The agreement, approved by the Cabinet, follows a period of political instability in the UK.
Key Highlights of the Agreement
- It will only come into effect after approval by the British Parliament.
- This marks India's first major trade agreement with a Western country since exiting the China-led RCEP in 2019.
Significance and Opportunities
- The agreement opens the UK market for Indian textiles and leather products.
- Tariff Elimination: India gains from tariff elimination on 99% of tariff lines, nearly covering 100% of trade value.
- New Market Access: Includes sectors such as goods, services, innovation, government procurement, and intellectual property rights.
- Includes a chapter on the Double Contribution Convention Agreement to avoid double social security contributions by Indian professionals in the UK.
Additional Agreements and Discussions
- Talks on the Bilateral Investment Treaty (BIT) are ongoing.
- The agreement could serve as a template for future trade engagements, including negotiations with the European Union.
- It aims to ease mobility for professionals in various roles, such as service suppliers, business visitors, and independent professionals.
The FTA is one of India’s most comprehensive agreements and is set to enhance bilateral relations and trade partnerships.
