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    Explained: Why India-UK free trade agreement is a big deal for both nations

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    India and the United Kingdom have formally sealed a Comprehensive Economic and Trade Agreement, a deal described as the “biggest, most economically significant trade deal that the UK has made since leaving the EU.” Finalised after 14 rounds of talks, the pact aims to boost bilateral trade from $57 billion in 2024 to $120 billion by 2030. Under the agreement, 99% of Indian products, including textiles, footwear, and food products, will get duty-free access to the UK market. For the UK, the deal reduces 90% of tariffs on its exports to India. Tariffs on UK-made cars will be reduced from over 100% to 10% under a quota system, and duties on Scotch whisky will fall from 150% to 75% immediately. The agreement also liberalises 36 service sectors and allows easier labour mobility for professionals like yoga instructors and chefs.



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