India–UK Free Trade Agreement Likely to Come into Effect from April This Year

New Delhi

According to a senior official, the India–United Kingdom Free Trade Agreement (FTA) is likely to come into effect from April this year, paving the way for a significant increase in Indian exports to the European nation.

The agreement was signed between the two countries in July last year and is currently awaiting approval from the UK Parliament before implementation.

The process has already begun, with debates on the FTA underway in both Houses of the UK Parliament.

Major Export Boost for India

As per an official statement, 99% of Indian exports to the UK will face zero tariffs under the agreement. This is expected to open up vast export opportunities in labor-intensive sectors such as:

• Textiles

• Marine products

• Leather and footwear

• Sports goods and toys

• Gems and jewellery

Additionally, other key sectors including engineering goods, auto parts and engines, and organic chemicals are also likely to benefit significantly.

India has also ensured that non-tariff barriers are adequately addressed under the agreement to prevent unfair restrictions on the free flow of goods and services.

Leaders Announced Successful Conclusion

Prime Minister Narendra Modi and his British counterpart Keir Starmer had announced the successful conclusion of the mutually beneficial India–UK FTA in May last year following a telephonic conversation.

Apart from the FTA, a Double Contribution Convention has also been signed to safeguard the interests of Indian professionals working in the UK.

The agreement is also expected to significantly boost trade in services, including IT and IT-enabled services, financial services, professional services, other business services, and educational services.

If implemented as planned, the India–UK FTA will mark a major milestone in strengthening bilateral economic ties between the two countries.

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