The India-UK free trade agreement is set to commence in April this year, potentially enhancing Indian exports to the UK. This agreement, inked in July last year, awaits approval from the UK Parliament to become operational. The deal promises significant benefits, with 99% of Indian exports to the UK poised to enjoy zero duty, creating vast export opportunities in various sectors like textiles, marine products, and engineering goods.
The process has already initiated, with discussions on the Free Trade Agreement (FTA) underway in both Houses of the British Parliament. The agreement aims to address non-tariff barriers to facilitate the smooth flow of goods and services between the two nations. Prime Minister Narendra Modi and his British counterpart Keir Starmer had announced the successful conclusion of the India-UK FTA in May last year, following a conversation between the two leaders.
Apart from the FTA, a Double Contribution Convention has been signed to safeguard the interests of Indian workers in the UK. This agreement is also expected to boost trade in services, including IT, financial services, and educational services. Furthermore, Indian service providers in the UK will benefit from an exemption from social security contributions for three years under the Double Contribution Convention, enhancing their competitiveness in the UK market.
