The India-UK Free Trade Agreement (FTA) is likely to be signed next week, according to government sources. Legal scrubbing is currently underway, and once the agreement is signed, it will require approvals from India’s Union Cabinet and the British Parliament before coming into effect.
The FTA is expected to boost India’s exports and aims to double bilateral trade between the two countries to $120 billion by 2030. As part of the agreement, the UK will offer duty-free access on 99% of tariff lines, covering almost the entire trade value of Indian exports in internal combustion engine vehicles.
Additionally, the UK is set to levy zero duty on 95% of tariff lines for Indian agricultural exports, including fruits, vegetables, processed foods, and cereals. In return, India is expected to reduce tariffs on 90% of goods imported from the UK.
A separate bilateral investment treaty is also being negotiated by India’s Department of Economic Affairs, with significant progress already made. The impact of this FTA on broader trade relations and other ongoing free trade negotiations remains to be seen.(Edited by : Ajay Vaishnav)
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