Finshots Daily The India-UK FTA explained
May 8, 2025
Discover the ins and outs of India’s new free trade agreement with the UK! Uncover how it potentially boosts economic relations and creates opportunities, especially for small and medium enterprises. The textile and IT sectors stand to gain, heralding job prospects, particularly for women. However, there's a twist—lower import duties on Scotch whiskey may hurt Indian liquor sales. What does this all mean for the future? Tune in for a fascinating analysis!
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India-UK FTA Boosts Exports
- India's export surplus with the UK motivates the free trade agreement to keep exports competitive.
- The FTA grants 99% of Indian exports duty-free access to the UK, while protecting sensitive sectors like agriculture.
UK Seeks Growth Through India
- The UK lost economic ground post-Brexit and seeks new trade partners with fast-growing economies like India.
- India is positioned as a prime market, being the world's 5th largest economy and set to become 3rd by 2028.
Automotive Sector Gains Big
- British luxury cars benefit from tariff cuts, making them more accessible in India.
- Indian automotive parts gain better UK access, supporting India's Make in India ambitions.