More Stories

Informist, Thursday, Jul. 24, 2025

 

Please click here to read all liners published on this story

--UK PM Starmer: Announcing 6-bln-sterling invest, export wins with India 
--UK PM Starmer:FTA with India to help create 2,200 jobs for British workers 
--UK PM Starmer: Trade deal with India most important after Brexit 
--PM Modi: UK FTA to boost Indian engineering sector 
--PM Modi: UK FTA to boost Indian textile, gems, jewelleries sectors 
--PM Modi: UK FTA to particularly benefit India's youth, farmers, MSMEs 
--PM Modi: UK FTA to open new mkts for India's agri, processed food sectors 
--PM Modi: India to be able to buy UK-made medical devices at lower prices 
--PM Modi: India to be able to buy UK-made aerospace pdts at lower prices 
--PM Modi: India, UK to collaborate on defence, security 
--PM Modi: India, UK to collaborate on AI, critical minerals 
--PM Modi: India, UK to collaborate on semi-conductor, cyber-security
--Indian farmers to get access to $37.5 bln mkt in UK under FTA 
--No safeguard duty proposed under UK FTA 
--UK FTA to offer penalty free mkt access 
--No tariff cuts under UK FTA on dairy pdts, edible oils 
--Indian marine exports to get UK mkt access at zero duty 
--FTA to allow India MSMEs participation in UK govt procurements 
--UK tariffs up to 16% on Indian goods to be scrapped under FTA 
--India set to gain over 5% UK mkt share in next 2 years 
--India's medical devices to get duty-free access in UK under FTA 
--FTA with UK to boost India's chemical exports by 30-40% 
--UK FTA to aid double India's gem & jewellery exports in 2-3 yrs 
--Indian electronics to get duty-free access in UK under FTA 
--FTA with UK to boost India's farm exports by 20% in 3 years 
--India's engineering goods exports to UK to double by 2030 
--Nearly 100% of India's trade value to be duty free under UK FTA 
--Labour intensive sectors to get $23 bln export push under UK FTA
--UK FTA offers duty-free mkt access to Indian generic drugs 
--UK FTA offers duty-free mkt access to Indian plastics 
--UK FTA offers duty-free access to Indian chemicals, fertilisers 
--UK FTA offers duty-free access to Indian engineering goods

 

NEW DELHI – Nearly 100% of India's exports to the UK will get a duty-free market access under the Comprehensive Economic and Trade Agreement signed Thursday between the two nations in the presence of Prime Minister Narendra Modi and his UK counterpart Keir Starmer. Under the free trade agreement, India has committed to cut duty on 90% tariff lines while the UK would slash duty on 99% tariff lines.

 

India's labour-intensive sectors--textile, footwear, gem and jewellery, and engineering goods--are set to get a strong boost under the trade agreement with the UK, Modi said in a statement after the signing of the deal. Both sides have set the aim to double bilateral trade by 2030, which was $23.15 billion in 2024-25 (Apr-Mar). 

 

India's labour-intensive sector is expected to get new export opportunities of $23 billion under the trade deal, according to the Indian commerce ministry. Products from sectors like engineering goods, electronic goods, gems and jewellery, chemicals and fertilisers, plastics, will attract zero duty in the UK, thanks to the free trade agreement. These duty concessions will provide a boost of 30-40% to India's chemical exports, and help double gem & jewellery exports in the next two to three years, the commerce ministry said.

 

The tariff cuts under the free trade deal will help make UK-made medical devices and aerospace products affordable in India, Modi said. UK has also committed to offering duty-free access to Indian medical devices and generic drugs. The UK will scrap tariffs upto 16% on Indian goods under the pact.

 

The two world leaders, during their meeting Thursday, also committed to collaborate on defence and security, artificial intelligence and cybersecurity, and critical minerals and semiconductors, Modi said.

 

The trade deal, which could create 2,200 jobs for British workers, is a landmark moment for the UK after its exit from the European Union, Starmer said in his statement. He also announced an investment of 6 billion pound sterling (around $8.1 billion) in India.  

 

"This agreement will prove to be especially beneficial for India's youth, farmers, fishermen, and MSME (Micro, Small, and Medium Enterprises) sector," Modi said. "New opportunities will be created in the UK market for India's agricultural produce and processed food industry."

 

Under the free trade agreement with the UK, Indian farmers will get access to UK's $37.5 billion market, the commerce ministry said. Except rice, the UK has committed to cut duty to zero on all farm products from India. This can help Indian farm exports to the UK grow 20% in three years. New Delhi, on other hand, has not offered any duty concessions for the agri sector, including dairy products and edible oil.

 

London has also kept some of its sensitive sectors, like sugar, milled rice, pork, chicken, and eggs, out of the agreement. It has allowed duty-free access to Indian seafood.

 

New Delhi has committed to lower duty on the import of whisky and gin from the UK to 75% initially and then to 40% in 10 years. India will give a duty concession to 10% from 110% on auto imports from the UK under a quota. "This starts with internal combustion engine (ICE) cars but transitions to electric vehicles (EVs) and hybrid to reflect how manufacturing in the UK is evolving," the UK Department for Business & Trade said. "Similarly, Indian access to the UK market for EVs and hybrid is also staged and under a quota to support the UK auto industry's transition to fully EVs, while increasing consumer choice." 

 

In a first, both sides have opened government procurement segment for each other under the trade deal. MSMEs on both sides can participate in the other's government procurements. 

 

The trade deal does not entail any safeguard duty and, hence, provides penalty-free market access. The agreement, which is likely to be ratified and come into effect in about a year, can help India gain over 5% market share in the UK in the two years, according to the commerce ministry. 

 

Both sides sealed the deal Thursday after negotiating for over three years. The UK is among India's top 10 export destinations. India had exported goods worth $14.55 billion in 2024-25 (Apr-Mar) and had imported $8.61 billion worth of goods in the year, according to data available with the commerce ministry. End

 

US$1 = INR 86.41

 

Reported by Krity Ambey

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.