Trade Pact
India won't cut duty on sensitive farm sector goods under FTA with UK - Govt
This story was originally published at 07:32 IST on 7 May 2025
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NEW DELHI – India will not cut duty on sensitive farm sector goods under the free trade agreement with the UK, the government clarified after Prime Minister Narendra Modi announced that New Delhi and London have concluded an ambitious and mutually benefit trade pact. "Items like dairy products, apple, cheese, etc excluded from any duty concessions by India to protect its farmers," the commerce ministry informed media.
There was some anxiety among Indian farmers over duty concessions on agri products from the UK. The concessions could have significantly hit the competitiveness of the Indian farm sector in the domestic market.
Under the FTA, India has committed to slash duty on 90% tariff lines and make 85% tariff lines fully duty-free by 2035. The UK, on the other hand, will cut duty on 99% tariff lines. The UK will also levy zero duty on all Indian industrial goods, the commerce ministry said.
The trade pact, which also entails a double contribution convention agreement, is likely to benefit over 60,000 Indians working in the UK on temporary visas. Under this, Indian employees in the UK are exempted from paying social security contributions in the UK for three years. The provision would help non-resident Indians save 20% of their salary, the commerce ministry said, quantifying the total benefit at INR 40 billion.
"India has secured significant commitments across sectors for Indian service suppliers in digitally delivered services, specially in selected professional services such as architecture and engineering, computer-related services and telecommunication services," the commerce ministry said. End
Reported by Krity Ambey
Edited by Avishek Dutta
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