India-UK Trade Deal / Understand the India-UK trade deal in simple language, who benefits and how much?

India-UK Trade Deal: On Thursday, India and Britain signed a historic free trade agreement (FTA), named the Comprehensive Economic and Trade Agreement (CETA). The agreement is the result of three years of intense negotiations between the two countries. The agreement was signed in London in the presence of Indian Prime Minister Narendra Modi and British Prime Minister Keir Starmer. This agreement will not only boost trade but will also accelerate shared prosperity, investment and job creation between the two countries.

Key features of the agreement

The agreement aims to increase bilateral trade between the two countries to $120 billion by 2030. 99% duty has been cut on Indian exports and 90% on British products. This will provide cheap and quality products to consumers of both countries. Along with this, "UK-India Vision 2035" was also launched, which is a roadmap to strengthen technology, defense, climate, education and people-to-people contact.

Benefits for India

Agriculture and Food Processing

• Zero duty on over 95% of agricultural and processed food products: Fruits, vegetables, cereals, turmeric, pepper, cardamom, mango pulp, pickles and pulses will now be exported to the UK without duty.
• 20% export growth expected: India's agricultural exports can grow by 20% in the next three years, reaching $100 billion by 2030.
• Export of new crops: Products like jackfruit, millets and organic herbs will get new opportunities in the UK market.
• Promotion of fisheries: States like Andhra Pradesh, Odisha, Kerala and Tamil Nadu will get a chance to increase their share in the UK's $5.4 billion marine market.

Marine products

• Duty-free exports: The earlier duty of 4.2%-8.5% on shrimp, tuna fish and fishmeal has now been abolished.
• Market share growth: India is likely to gain 2.25% share, leading to an increase in fishermen's income.

Coffee, Tea and Spices

• Duty-free access: Exports of coffee, tea and spices will increase, especially instant coffee will get a competitive advantage in the European market.

Textiles and Apparel

• Zero duty on 1,143 product categories: Readymade garments, home textiles, carpets and handicrafts will benefit.
• Market share growth: India's share in the UK may increase to 5% in the next 1-2 years.

Engineering and Electronics

• 18% duty eliminated: Duty removed on electric machinery, auto parts and industrial machinery.
• Export doubling: Engineering exports may reach $7.5 billion in the next five years.
• Electronics growth: Products such as smartphones, optical fibres and inverters will get duty-free access.

Medicines and Medical Devices

• Boost to generic medicines: Duty eliminated on devices such as surgical equipment, X-ray machines and ECG machines.
• Exports increase: Demand for affordable Indian medicines will increase in the UK.

Gems and jewellery

• Doubling exports: Current exports of $941 million may double in the next 2-3 years.

Leather and footwear

• 16% duty eliminated: Hubs like Agra, Kanpur, Kolhapur and Chennai will benefit.
• Market demand will increase: Demand for affordable footwear and leather products will increase.

Benefits for the UK

• Duty cut on 90% of products: Indian clothes, textiles and other products will become cheaper for British consumers.
• 11 billion pounds of imports: Duty exemption on Indian products will benefit British consumers and businesses.
• Job creation: Thousands of new jobs will be created, boosting economic growth.

Benefits for Indian consumers

• Duty reduction on British products: Average import duty will fall from 15% to 3%.
• Scotch whisky: 150% duty will fall to 75% and then to 40% over the next 10 years.
• Electric vehicles: 110% duty will be reduced to 10% (under quota).

Other products: Cosmetics, chocolate, biscuits, lamb, salmon fish, soft drinks and medical equipment will become cheaper.

Service sector and innovation

• Opportunities for Indian professionals: It will be easier for project specialists, yoga instructors, chefs and musicians to work in the UK.
• Benefits to IT professionals: More than 60,000 professionals will benefit every year.
• Promoting innovation: Collaboration for new technologies and research will increase.

Statement of British Prime Minister Keir Starmer

Keir Starmer called the agreement a big victory for Britain. He said, "This agreement will create thousands of new jobs across the country, open up new opportunities for businesses and accelerate economic growth in every corner of Britain."