$6.5 billion UK-India free trade deal to enter into force on July 15 after Starmer-Modi G7 talks | Today’s news
Britain’s free trade agreement (FTA) with India will enter into force on 15 July, the UK government announced on Wednesday (17 June), paving the way for the implementation of an agreement expected to boost bilateral trade and investment between the two countries.
The announcement follows discussions between British Prime Minister Keir Starmer and Prime Minister Narendra Modi on the sidelines of the G7 summit in France.
The two sides have reportedly agreed to move forward with the deal, despite India’s concerns over the UK’s upcoming steel tariff regime, which is due to come into force on 1
Concerns over UK steel tariffs
Quick answers to key questions
•5 QUESTIONS
The UK-India Free Trade Agreement is expected to significantly improve market access through tariff reductions, making British products more competitive in India and Indian products more affordable in the UK.
India has raised concerns about the UK’s new steel tariff regime as it could impact the trade deal, leading New Delhi to seek negotiations or delay the implementation of the FTA.
Businesses must complete the required registration process within 28 days to take advantage of the duty reductions under the UK-India Free Trade Agreement.
Under the agreement, India will reduce tariffs on whiskey from 150% to 40% and tariffs on automobiles to 10%, while the UK will reduce tariffs on clothing, footwear and selected food products from India.
Yes, the FTA is likely to enhance India’s access to the UK market, making Indian exports more competitive and fostering stronger economic ties between the two countries.
Indian officials reportedly said Delhi could seek to reopen discussions or delay implementation of the trade pact over concerns about the impact of new UK trade measures affecting steel imports.
The dispute has raised uncertainty over the implementation of the deal, which was signed last year and is estimated to be worth 4.8 billion pounds ($6.5 billion).
However, the talks between Starmer and Modi helped clear the way for the planned implementation of the agreement.
The UK is urging businesses to prepare
UK Trade and Commerce Secretary Peter Kyle welcomed the decision and urged companies to take advantage of the opportunities the pact brings.
“The deal gives UK exporters an edge over international competitors and I would encourage all businesses to ensure they are properly prepared,” Kyle said in a statement.
The UK government said businesses have 28 days to complete the registration process required to take advantage of the tariff reductions under the deal.
A significant reduction in tariffs according to the agreement
The free trade agreement is expected to significantly improve market access for businesses in both countries through a series of tariff reductions.
India to cut tariffs on British whiskey from 150% to 40%.
-Car tariffs will be reduced to 10% under the quota system, from levels of up to 100%.
– The UK will reduce tariffs on a range of Indian exports, including clothing, footwear and some food products.
The reduction is expected to increase product competitiveness in both markets and encourage greater trade flows.
Support for bilateral economic ties
The implementation of the agreement marks a significant milestone in India-UK economic relations and is expected to strengthen trade ties between the world’s fifth and sixth largest economies.
The agreement aims to increase bilateral trade, create new business opportunities and promote investment across sectors including manufacturing, consumer goods, food products and services.
For Britain, the deal is one of its most significant post-Brexit trade deals, while for India it expands access to a major export market and deepens engagement with a key strategic partner.
