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As India and Britain look set to sign a free trade agreement (FTA), some industries are disappointed and want a level playing field.
The Indian cabinet has given its consent to the deal as Prime Minister Narendra Modi is headed to the UK to sign it with his British counterpart Sir Keir Starmer.
The pact, formally called a comprehensive economic and trade agreement, will now have to be ratified by the British parliament, which could take several months.
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For Britain, this is the biggest and most economically significant bilateral trade deal since it left the European Union. The government says the deal is expected to add £4.8bn to the economy and £2.2bn in wages every year in the long run.
Britain is the sixth-largest investor in India, with cumulative investments of around $36bn. There are at least 1,000 Indian companies operating in the country, employing more than 100,000 people, with a total investment of $2bn.
At a time when countries are trying to navigate the turbulent effects of US President Donald Trump’s tariff upheaval, this pact comes as a great economic boost for both countries.
What’s in the deal
Once made law, the agreement will reduce 90% of tariffs on British exports to India that include whisky, cars, cosmetics, salmon, lamb, medical devices, electrical machinery, soft drinks, chocolate, and biscuits.
India will get a zero-tariff deal on 99% of its tariff lines, covering nearly 100% of trade value. These include clothes, footwear and food products, including frozen prawns. With a zero tariff on textiles and apparel, Indian exports will get the same advantage as countries like Bangladesh and Vietnam.
Read more:
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US and Japan agree trade deal to circumvent worst of tariffs
India has got concessions on easy mobility for its professionals, including contractual suppliers and intra-corporate transferees with dependents.
The…
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