The comprehensive commercial contract, which has been negotiated for more than two years, includes 27 chapters and is expected to provide significant access to the market and investment opportunities throughout the industry.
The agreement also includes reserved chapters on innovation and anti -corruption, sections are first introduced in any Indian FTA.
“The preparations are in full swing and all key officials from both sides will be present for the FTA ceremonial signature. The agreement is expected to be signed after 10:00 British time, which will be around 15:00,” said one of the two people who met this matter.
“Since the legal scrubbing is still ongoing and in its last stages, which will probably be completed in the next few weeks, the agreement will be signed now and its full text will be published later, after several weeks,” the other person said.
Legal scrubbing is a standard process where legal teams on both sides carefully check the text due to consistency, clarity and compliance with domestic laws.
Questions sent to the Ministry of Commerce and the United Kingdom Embassy in Nový Delhi remained unanswered until the press.
The release of the full FTA text is very important for transparency because it allows stakeholders, including industry, legislators and civil society, to assess the obligations made in the trade agreement.
It ensures responsibility, helps businesses to prepare for implementation and enables informed public debate on the potential economic, legal and social consequences of the agreement.
Even after the signing of the agreement, FTA will only come into force after receiving legal permits from the British Parliament – a process that could take up to a year, depending on how the parliamentary procedures in the UK proceeded, the other person said.
The Union Cabinet led by Prime Minister Narendra Modi approved an agreement on free trade in India UK on Tuesday.
Miner
The industries that are likely to benefit from FTA include fabric, shoes, automatic components, gems and jewelry, furniture, sports goods, chemicals and machines – from which they currently face tariffs in the UK from 4% to 16%.
“The Indian textile and clothing sector is preparing to make the most of India-UK FTA. We see growing engagement from buyers in the UK across the categories of small and medium-sized enterprises for large integrated manufacturers-some companies are already expanding this demand,” said Prabhu Dhamodharan, Indian Texpers (ITF).
“With the added advantage of duty -free access within FTA, we are trying to increase our market share in the UK from the current 6% to 10% in the next two years and unlock more £6,000- £7,000 crore in business through stable, lasting growth. ”
According to the final conditions, the obligation to Scottish whiskey was reduced from 150% to 75% and will be reduced to 40% in the next 10 years.
Similarly, the obligation of cars was reduced from 100% to 10%, effective gradually for several years after the FTA manifests. However, the import of the vehicle will only be permitted under a fixed quota. The size of the quota is not immediately clear, but is probably insignificant compared to the size of the Indian domestic automotive market.
India-UK FTA is one of the most complex trading pacts that India has signed in recent years and has covered goods, services, investments and sustainability problems. A total of 27 chapters have been negotiated since January 2022.
14. And the last round of the negotiations began in January 2024.
Also read: India-UK Trade Pact: A new paradigm for the digital economy
Meanwhile, in his report on leaving the British and Maldives from 23 to July 26, he said that India and the UK share a complex strategic partnership that has seen significant progress across sectors such as trade, innovation and defense.
PM Modi said his meeting with British Prime Minister Keir Starmer would be an opportunity to further strengthen the economic partnership aimed at promoting prosperity, growth and job creation in both countries.
According to the Ministry of the Ministry of Trade, Indian exports to the UK in FY23 in the amount of $ 11.46 billion, rose to $ 12.98 billion in FY24, and increased to $ 14.55 billion in FY25.
(Tagstotranslate) India UK UK Agreement on Free Trade 2025
