India and the United Kingdom have concluded negotiations for a Free Trade Agreement (FTA) that government sources say will eventually lead to an increase in Indian exports and help double bilateral trade to $120 billion by 2030.The joint legal scrubbing of the FTA text is currently under way and expected to be completed within three months. The final agreement will require approval from the Indian Cabinet and the UK Parliament, and its implementation may take over a year.
Sources highlighted that the UK has agreed to offer duty-free access on 99% of tariff lines, covering nearly 100% of trade value, including internal combustion engine vehicle exports. Indian exports in agriculture, fruits, vegetables, processed foods, and cereals will also benefit, with zero duty on 95% of tariff lines.
In return, India will lower tariffs on 90% of UK imports. A Bilateral Investment Treaty is also being negotiated separately by the Department of Economic Affairs, and significant progress has already been made.Also Read: India-UK FTA opens $1 billion apparel export opportunity, says Gokaldas MD
Addressing concerns around automotive imports, sources said there will be no immediate duty cuts on low-cost futuristic cars. Instead, tariff reductions will be phased over 15 years, by which time India is expected to sell over 1 crore vehicles annually.They also defended the lack of a minimum import price on Scotch whisky, explaining that such imports represent only 2.5% of India’s whisky market and are unlikely to disrupt domestic producers. As Scotch is a GI-tagged product made in limited quantities, there’s little scope for increased UK exports.Commerce and Industry Minister Piyush Goyal has already held consultations with Export Promotion Councils and industry associations regarding the FTA, government sources said.(Edited by : Sheersh Kapoor)First Published: May 8, 2025 10:01 PM IST
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