By Admin 
During Prime Minister Narendra Modi’s visit to United Kingdom (UK), India signed the much awaited trade agreement (FTA) with Britain on Thursday (July 24, 2025). Britain’s Prime Minister Kir Stmper welcomed PM Modi at Checkers House. During this time, India’s Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds signed the agreement.
With this deal, both countries will start a new chapter in bilateral relations. This agreement will increase investment in both countries and will also create new employment opportunities for the common people. Under this agreement, there will be a direct impact on the pockets of the people of the country, because under the FTA, medicines, clothes, electronic to fashion items will become cheaper. However, some things will also be expensive by this.
What things will be cheap
- Textile and fabric business will benefit
The tariff of 8 to 12 percent of the currently 8 to 12 percent tariffs on clothing and home textile products exported from India to Britain will now be abolished. With this agreement, India’s textiles will become more competitive than countries like Bangladesh and Vietnam.
- Gemstone, Jewelery and leather industry
Since this agreement, leather goods with high value products such as gold and diamond jewelery will now be duty free in Britain and no additional fee will have to be paid on it. This step will specially benefit India’s MSME and luxury brands and will strengthen India’s presence through Britain in Europe’s markets.
- Engineering goods and auto parts
Britain will now abolish import duty (import duty) on machinery, engineering tools and auto parts built in India. This will emphasize India’s participation in the Industrial Supply Chain of UK and Europe
- IT and Professional Service
The recognition of professional qualifications and visa rules will be relaxed in areas such as Engineering, Architecture and Accounting from FTA. With this, the professionals of India will be able to work easily in the UK and after this agreement, there is a possibility of becoming about 60,000 new jobs in the next five years in areas like IT, Finance, Law and Health Services.
- Medicines and medical devices
With the free trade agreement, Indian pharmaceutical companies will benefit from the ease of regulatory process in Britain and medicines will be cheaper. This includes especially generic medicines. This will also make access to NHS easier and the approval process of medicines for India companies can also be intensified.
- Food processing, Tea, Spices and Marine Products
Many agricultural and food exports in India, including sea products like basmati rice, shrimp, premium tea and spices, will be abolished. This will benefit business related trade in states like Assam, Gujarat, Kerala and West Bengal.
- Chemicals and Specialty Materials
FTA will emphasize exports from major industrial hubs of Gujarat and Maharashtra on low tariffs on agrochemicals, plastic and special chemicals. India aims to double its chemical exports with Britain by 2030 under this agreement.
- Green Energy and Cleintech
The agreement will open the way for joint ventures of India and Britain in the field of renewable energy including solar energy, green hydrogen and electric vehicles (EV) infrastructure. This is expected to increase Britain’s investment in India’s clean energy field and will also give emphasis to develop new innovative techniques jointly.
- Alcoholic beverages (benefits Britain)
The FTA deal between India and Britain will now have the pleasure of alcoholics. Because in the next 10 years, India will reduce the 150 percent tariff on Scotch whiskey to 30 percent. This will greatly increase the British market share in India and liquor enthusiasts in India and people involved in hotel business will get liquor at affordable prices.
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