Historic UK-India trade pact set for July 15 rollout, to boost economy, exports and investment

PTC Web Desk: In a major milestone for economic relations between the United Kingdom and India, Prime Minister Keir Starmer and Prime Minister Narendra Modi have confirmed that the landmark UK-India Free Trade Agreement (FTA) will come into force on July 15.

The agreement, described as the most extensive trade pact ever implemented by India, has been fast-tracked following its signing, allowing businesses in both countries to begin accessing its benefits sooner than expected.

Officials from both governments have urged companies to make the necessary preparations to take advantage of reduced tariffs, simplified trade procedures, and broader market access once the agreement becomes operational.

According to projections, the deal could add approximately £4.8 billion to the UK economy and £5.1 billion to India's GDP, while boosting annual bilateral trade by an estimated £25.5 billion over the long term.

Several key sectors are expected to gain significantly from the agreement. Import duties on whisky entering India will be progressively reduced from 150% to 40%, while tariffs on automobiles will drop from 100% to 10% under a quota-based arrangement. Duties on cosmetics, which currently reach as high as 22%, will either be removed immediately or phased out over time.

Indian exporters are also set to benefit as the UK lowers tariffs on a range of products, including garments, footwear, and selected food items. The move is expected to make these goods more competitive in the British market while offering consumers a wider range of choices at lower prices.

UK Secretary of State for Business and Trade Peter Kyle welcomed the development, stating that the agreement would make trade between the two nations more affordable, efficient, and accessible. He noted that the pact will liberalise 99% of UK tariffs and 90% of Indian tariffs, strengthening an already robust trading partnership valued at around £48 billion.

Trade experts believe the agreement will provide British businesses with a significant advantage in the Indian market, given the scale and scope of the concessions included in the deal.

In addition to the FTA, the UK-India Double Contributions Convention Agreement will also become effective on July 15. The arrangement allows eligible professionals temporarily working in either country to continue paying social security contributions in their home nation for up to five years, preventing duplicate payments.

Authorities in both countries have advised businesses to complete the required registration and compliance procedures ahead of the implementation date. UK companies are required to register with HM Revenue & Customs (HMRC), while Indian exporters should follow the guidelines issued by the Government of India to ensure they can fully benefit from the new trade framework.

The agreement is being viewed as a historic step forward in UK-India economic cooperation, with expectations that it will create new opportunities for investment, trade, and job creation in both nations.