India and the United Kingdom are likely to finalise a much-awaited Free Trade Agreement (FTA) during Prime Minister Narendra Modi’s upcoming visit to the UK. According to Money Control, the deal, which has been in negotiations for over two years, is expected to bring significant tariff reductions on key items such as Scotch whisky and British garments, sources familiar with the matter have confirmed.
A Breakthrough After 14 Rounds of Talks
The deal marks a major milestone in bilateral trade relations, following 14 rounds of intense negotiations between the two nations. Officials have worked through differences in sectors ranging from automobiles and alcoholic beverages to rules of origin and data protection.
Key Gains for Both Sides
Under the proposed agreement, India is expected to lower import duties on premium British products such as Scotch whisky and automobiles. In return, the UK may ease tariffs and market access for Indian textiles, apparel, and pharmaceutical products—sectors that are vital to India’s export economy.
Whisky, Garments in Focus
The highlight of the FTA is expected to be significant tariff cuts on Scotch whisky, which currently attracts an import duty of 150% in India. British garment exporters, too, stand to benefit from reduced tariffs, making products more competitive in the Indian market.
PM Modi’s Visit to Seal the Deal
Government sources indicate that Prime Minister Modi’s visit—his first to the UK since returning to office—is strategically timed to sign the trade pact, which has seen multiple delays due to political transitions and negotiation hurdles.
Geopolitical and Economic Implications
The India-UK FTA will be one of the most comprehensive post-Brexit trade agreements signed by Britain. For India, it strengthens its position in the global supply chain and aligns with its strategy of diversifying trade partnerships beyond traditional allies.
Boost for Make in India and Global Britain
The FTA is projected to support India’s Make in India initiative by opening new avenues for domestic manufacturers while helping the UK reposition itself as a global trading powerhouse after Brexit. Officials have also hinted at collaboration in fintech, education, and green energy as potential extensions of the agreement.
Implementation Timeline and Next Steps
Once signed, the FTA will undergo parliamentary and legal scrutiny in both nations. Trade analysts estimate that tariff cuts and procedural changes could begin rolling out within six to eight months of ratification.
Photo Credit: Money Control
