A historic free trade agreement between Britain and India will officially come into force next month on July 15. The announcement follows successful talks between British Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi at a G7 leaders summit in France. According to UK government estimates, the deal is expected to increase UK GDP by £4.8 billion and bilateral trade by £25.5 billion annually in the long run.
The implementation was previously delayed due to India’s concerns over Britain’s new steel tariff regime, which starts on July 1. To protect its domestic industry, Britain plans to reduce tariff-free quotas and impose steep duties on excess steel shipments. However, the Indian government confirmed that 85% of its exports will remain unaffected, as covered items will still have access through quotas. Both nations held constructive talks to protect commercial interests and minimise market disruptions.
Under the new agreement, India will gradually cut whisky tariffs from 150% down to 40% by the tenth year. It will also reduce tariffs on qualifying vehicle imports to 10% under a quota system, from rates that currently exceed 100%. In return, Britain will slash tariffs on Indian goods like clothing, footwear, and certain food items. British Business and Trade Secretary Peter Kyle stated that the deal gives British exporters a strong edge over international competitors.
You Might Also Like- Wipro Launches AI Centre to Boost the Growth Strategy
Additionally, the agreement helps temporary workers by removing double social security contributions. Workers on temporary postings will now be exempt from making these double payments for up to five years, up from the previous three-year limit. This historic timeline marks the quickest turnaround from signing to implementation for a British trade deal.
