The legal review of the final text is currently in progress. "The process of legal scrubbing of the FTA text is going on. It is expected to be signed next week," PTI quoted an official as saying.
The agreement, once implemented, is expected to eliminate import taxes on Indian exports such as leather goods, clothing, footwear, toys, marine products, and gems and jewellery. On the other hand, it is expected to make British products like whisky, gin, cars, medical devices, cosmetics, chocolates, and soft drinks more affordable in the Indian market, in a bid to double trade between the two nations to $120 billion by 2030.
However, to safeguard local interests, India has excluded sensitive agricultural items — such as apples, cheese, and dairy products — from tariff concessions. After the signing, the FTA will need to be ratified by the British Parliament and approved by India’s Union Cabinet. The deal is expected to come into force around a year after its formal signing.
A landmark moment in bilateral ties
On May 6, India and the UK announced the conclusion of FTA negotiations, marking the end of over three years of complex discussions. Prime Minister Narendra Modi described the agreement as a “historic milestone” in India-UK relations.
“Delighted to speak with my friend PM Keir Starmer. In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial free trade agreement, along with a double contribution convention. These landmark agreements will further deepen our comprehensive strategic partnership and catalyse trade, investment, growth, job creation, and innovation in both our economies. I look forward to welcoming PM Starmer to India soon,” PM Modi posted on X.
Major gain for Indian professionals
Alongside the trade pact, the two nations had, in May, also concluded a social security agreement. Under this, Indian professionals working in the UK will be exempt from paying social security contributions for up to three years. This long-standing Indian demand is expected to benefit more than 60,000 IT sector employees and could lead to salary savings of nearly 20 per cent.