India-UK FTA starts July 15: What's getting cheaper for Indians?

India-UK FTA starts July 15: What's getting cheaper for Indians?

India's Free Trade Agreement (FTA) with the United Kingdom will come into effect on July 15, nearly a year after it was signed.

This will be the first bilateral trade agreement between India and a European/Western nation, following India's previous deal with the European Free Trade Association (EFTA) last year.

FTA to open new opportunities for India's exports

Union Commerce and Industry Minister Piyush Goyal welcomed the FTA, saying it would open up new opportunities for India's exports.

He said, "By securing immediate duty-free access on 99% of our tariff lines, we have systematically dismantled long-standing tariff walls."

The deal will allow sectors such as textiles, leather, marine, engineering, and processed food to compete without disadvantages.

Deal will protect domestic sensitivities, says Goyal

Goyal emphasized that the FTA is designed to ensure economic security.

He said, "Stringent exclusion lists are actively deployed to insulate our sensitive agricultural and rural economies from import volatility."

The deal also exempts professionals from double insurance contributions, protecting their financial interests.

This dual breakthrough significantly expands India's global commercial footprint while protecting domestic sensitivities.

UK estimates FTA could boost bilateral trade significantly

The Comprehensive Economic and Trade Agreement (CETA) will see the UK eliminate tariffs on several Indian exports, while safeguarding India's dairy, cereals, oilseeds, and vegetable sectors.

British estimates suggest that the deal could add about £5.1 billion annually to India's GDP and around £4.8 billion to the UK's GDP.

In the long term, it could increase bilateral trade by around £25.5 billion per year.