India to Gain from India–UK FTA With 99% Duty-Free Exports
The long-awaited India–UK Free Trade Agreement (FTA) is set to deliver substantial economic benefits for India. With duty-free access now extended to 99% of Indian exports into the UK, several key sectors are poised for accelerated growth under the Comprehensive Economic and Trade Agreement (CEPA). The deal is scheduled to be officially signed on July 24, 2025, during PM Modi’s UK visit.
Major Export Sectors to Gain
The Federation of Indian Export Organisations (FIEO) has identified several sectors set to benefit, including:
- Textiles & Apparel
- Leather & Footwear
- Gems & Jewellery
- Pharmaceuticals
- Marine Products
- Engineering Goods
These industries currently face UK import duties of 4–16%, which are expected to be eliminated under the new agreement.
Mutual and Reciprocal Benefits
The UK will reduce tariffs on 90% of exports to India, including Scotch whisky, gin, automobiles, cosmetics, and medical devices. For example, duties on Scotch will fall from 150% to 75% immediately and to 40% over 10 years, while UK car tariffs will drop to 10% under quotas.
Economic Impact & Job Growth
The agreement is expected to nearly double bilateral trade to around USD 100 billion by 2030 (from USD 60 billion in 2024). It could significantly boost employment in labor-intensive sectors, particularly textiles, leather, gems, and footwear. UK GDP could also see an uplift of £4.8 billion annually.
Beyond Tariffs: Services & Mobility
The FTA also addresses services trade and professional mobility. Indian professionals—such as chefs, musicians, and yoga instructors—will benefit from smoother entry into the UK. Additionally, a social security agreement ensures Indians working temporarily in the UK won’t pay double contributions.
Next Steps and Ratification
The agreement, concluded in principle on May 6, 2025, will be signed by Commerce Minister Piyush Goyal and his UK counterpart on July 24. It awaits approval from both the British Parliament and India’s federal cabinet, expected within the next year .
This landmark FTA represents a strategic win for the “Make in India” initiative, enhancing export competitiveness and opening new markets. It marks India’s first comprehensive trade deal with a European partner and a major step in its global economic integration.
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