The United Kingdom and India have signed a landmark Free Trade Agreement (FTA), marking the most significant trade deal for the UK since Brexit. This ambitious agreement is set to transform the trading relationship between the two nations, making it easier and more cost-effective to buy and sell goods and services.
What Does This Mean for UK Businesses?
This significant agreement is expected to deliver:
- A staggering £25.5 billion increase in bilateral trade between the UK and India.
- A £4.8 billion boost to the UK economy.
- Tariff reductions on 90% of UK goods, with 85% becoming completely tariff-free within ten years.
- Halved duties on UK whisky and gin, with further reductions in the future.
- Reduced automotive tariffs from over 100% to just 10%.
Key Benefits of the Agreement
The FTA includes significant tariff reductions on both sides, making UK products more competitive in India and vice versa:
UK Reductions on Indian Imports:
- Clothing and footwear.
- Food products, including frozen prawns.
- Jewellery and gems.
- Selected automotive products.
India Reductions on UK Imports:
- Cosmetics.
- Scotch whisky, gin, and soft drinks.
- Higher-value cars.
- Food products like lamb, salmon, chocolate, and biscuits.
- Medical devices, aerospace products, and electrical machinery.
In addition to goods, this agreement opens new opportunities for UK service providers to compete for more contracts in India, enhancing the UK’s presence in the Indian market.
How Beckchoice Can Help
At Beckchoice, we understand that new trade opportunities can be both exciting and challenging. Our expert team is here to help UK businesses navigate this new trading landscape with confidence. Whether you are looking to import from or export to India, we provide end-to-end logistics solutions, including freight forwarding, customs clearance, and complete supply chain management.
If you would like to speak to someone about this update and/or discuss our end-to-end service solutions for India, please contact our team today.