New Delhi has secured duty-free access for about 99% of Indian exports to Britain, according to its commerce minister

India and the UK signed a multibillion-dollar free trade agreement (FTA) in London on Thursday, at a meeting of prime ministers Narendra Modi and Keir Starmer.

Modi called the signing a "milestone moment," while Starmer described it as the "the biggest and most economically significant" trade agreement signed by the UK since Brexit.

"I am delighted that after the hard work of several years, today our two nations have signed the Comprehensive Economic and Trade Agreement," Modi said. He added that the deal "would boost key sectors including Indian textiles, footwear, gems and jewelry, seafood, and engineering goods."

Under the agreement, India has agreed to reduce its average tariff on UK imports from 15% to 3%. The move will make British products such as gin and whisky, electricals and medical devices, cosmetics, chocolates, and luxury cars cheaper in India.

"Duty-free access for about 99% of Indian exports unlocks nearly $23 billion in opportunities for labour-intensive sectors, marking a new era for inclusive and gender-equitable growth," Indian Commerce MinisterPiyush Goyalsaid on X.

Total trade between the UK and India was $57.7 billion in 2024, according to UK Trade and Investment data. The two countries have set a target to increasebilateral tradeto $120 billion by 2030.

The pact will also benefit India's services sector, including information technology (IT), IT-enabled Services (ITeS), financial services, professional services such as management consultancy, architecture, and engineering, and education-related services.

Another highlight is the exemption from social security contributions in the UK for Indian professionals on temporary assignments of up to three years.

"Chefs, yoga instructors, musicians, and business visitors will benefit, advancing our vision to be a global talent hub," Goyal said.

The FTA, which was approved by the Indian cabinet, has not yet been cleared by the British Parliament. It is expected to take at least a year to come into effect, according to the BBC.

(RT.com)