Free Trade Agreement

India and UK sign historic trade deal, what will become cheaper after the trade deal?

Today on 24th July 2025, India and the United Kingdom signed a major and historic Free Trade Agreement (FTA) aimed at boosting trade between the two countries.

The agreement is expected to reduce import duties, help industries grow and make many products cheaper in both countries.

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Free Trade Agreement | Big benefits for both Nations

This Free Trade Agreement will remove or reduce tariffs on many goods traded between India and the UK. The goal is to make it easier and more affordable for businesses to import and export high demanded products.

Free Trade Agreement | Cheaper products for Indian markets

Many items coming from Britain will now become cheaper in India. The average import tax on British goods will fall from 15% to just 3%.

Key British products getting cheaper in India after FTA

• Scotch Whisky: Import duty drops from 150% to 75%

• British Cars: Tariffs reduced from over 100% to 10% under a special quota

• Cosmetics and Skincare: Lower taxes on top UK beauty products

• Soft Drinks and Chocolates: More affordable UK food and drink items

• Medical Devices: Easier access to advanced healthcare equipment

Free Trade Agreement | India to export more to the UK:Britain

Indian products will also benefit from the new agreement. Tariffs on many popular Indian products will be reduced or removed altogether, making them more attractive to British markets.

Indian exports that will become more competitive:

• Textiles and Garments

• Leather Products and Footwear

• Gold and Diamond Jewellery

• Furniture and Home Decor

• Sports Goods and Auto Components

• Chemicals and Machinery

• Processed Foods and Spices

• Basmati Rice, Shrimp, and Tea

Many of these categories particularly gold jewellery, home textiles and ready-made garments will have zero tariffs. This will give Indian manufacturers a strong edge or boost in the UK markets.

Also Read: Reciprocal Tariff; आसान नहीं डगर टैरिफ की, क्या भारतीय रोज़गार और व्यापार में बदलाव होने वाले हैं ?

Free Trade Agreement | Economic impact in the United Kingdom

Britain will benefit greatly from this trade agreement. It is expected that Indian companies will increase their investment in Britain which will help in starting more businesses and creating jobs.

Major impact or benefits expected under FTA

• Over 2,200 new jobs to be created

• Wage increase of up to £2.2 billion yearly for UK workers

• More choices and better prices on clothing, shoes, and food products

• UK exports to India may grow by 60% in the long term

• This equals about £15.7 billion in extra exports by 2040

Free Trade Agreement | Stronger business ties ahead

Since this Free Trade Agreement is expected to deepen business relationships between India and the UK. With easier market access, smoother customs processes and lower trade costs.

Industries in both countries can look forward to stronger growth, new opportunities and good business relationships as well.

Business cooperation and globally competitive

This landmark India-UK Free Trade Agreement marks a new beginning for trade and business cooperation. From cheaper Scotch whisky and British cars in India to more Indian textiles and jewellery in the UK.

Literally this deal brings value to producers, sellers and buyers alike.

It also sets the foundation for future economic partnerships, helping both nations to grow together and stay globally competitive.

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