India, UK Free Trade Agreement to come into effect from July 15
New Delhi, June 17: The historic Free Trade Agreement between India and the United Kingdom (UK), worth billions of Pounds, will enter into force on July 15.
The date was announced by Prime Minister Narendra Modi and UK Prime Minister Keir Starmer during their meeting in France on the sidelines of G7 Summit.
Implementation of the Agreement on July 15 will mark the quickest ever turnaround following signature, ushering in sweeping opportunities for businesses in the UK and India, who are now encouraged to prepare for entry-into-force to feel the benefits of massive tariff cuts.
“The Agreement will become most comprehensive trade deal India has ever brought into force,” said a statement by the British High Commission here today.
“The deal boosts UK GDP by £4.8 billion and Indian GDP by £5.1 billion and bilateral trade by £25.5 billion every year in the long run.
“It will bring a range of benefits to industries across the UK and India, with whisky tariffs dropping from 150% to 40%, automotives from 100% to 10% under a quota and cosmetics will see tariffs of up to 22% eliminated either from day one or after staging,” the High Commission said.
Under the Agreement, the UK will cut tariffs on Indian goods coming into the country such as clothes, footwear, and some food products.
Less cost for British businesses importing Indian products could mean cheaper prices and more choice for consumers across the country.
UK Business and Trade Secretary Peter Kyle said: “We are bringing our landmark trade deal with India into force as quickly as we can because we want businesses in both India and the UK to immediately feel the benefits of 99% of UK tariffs and 90% of Indian tariffs being liberalised.
“Trade is going to be cheaper, quicker, and easier for businesses on both sides, and I encourage all businesses to ensure that they are properly prepared to sell to each other’s market in the years to come.
“The date is now set to boost our £48 billion trading relationship and take it to the next level.”
Kyle went on to add, “We have extended the benefit for UK nationals moving to India to work and continue to build entitlement to a UK State Pension from 36 months to 60 months. They will continue to pay National Insurance Contributions during that period, without also having to pay social security contributions in India.
“This is reciprocal for both British and Indian professionals and will be applicable to highly skilled professionals on pre-existing visa routes.
“This is in line with our arrangements with other countries such as Korea, Japan, and Canada.
“This will be achieved through the UK-India Double Contributions Convention Agreement, which will enter into force at the same time as the UK-India FTA.” (BVI)
