In a historic milestone, India and United Kingdom (UK) successfully concluded Free Trade Agreement (FTA)

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It is a comprehensive deal marking the culmination of around 3 year-long negotiation process.

Key Highlights of the India-UK FTA

Tariff Elimination: On about 99% of the tariff lines covering almost 100% of the trade value, would benefit India.
- Currently, bilateral trade stands at about USD 60 billion.
Ease the Mobility of Professionals: Including Investors, Intra-Corporate Transferees including their partners/dependent children with right to work; Independent Professionals, etc.
Double Contribution Convention: Provide exemption for Indian workers temporarily in UK and their employers from paying social security contributions in the UK for three years.
Opportunities for Talented and Skilled Youth: To gain from UK’s digitally delivered services and advanced digital infrastructure.
Export opportunities: For sectors such as textiles, marine products, leather, footwear, engineering goods, auto parts, organic chemicals, etc. increasing their competitiveness.
Benefit Services: Like IT/ITeS, financial services, etc., through new opportunities and jobs.
Others: Address Non-tariff barriers, promote good regulatory practices, etc.

Meaning: Agreement between country(s) or regional blocks to reduce or eliminate trade barriers and enhance trade.
- Currently, India has FTA with Japan, South Korea, Sri Lanka, Singapore, ASEAN, Malaysia, etc.
Scope: Normally covers trade in goods/services but can also cover intellectual property rights (IPs), investment, government procurement and competition policy, etc.