India-UK Free Trade Agreement Set to Boost Bilateral Trade by 15% Annually

In a noteworthy development, the newly signed Free Trade Agreement (FTA) between India and the UK is projected to bolster bilateral trade by approximately 15% annually until 2030. CareEdge, in its latest report, highlighted the substantial economic impact of this agreement signed on May 6, after nearly three years of negotiations.

The FTA entails a significant reduction of tariffs, with India slated to eliminate duties on 90% of imports from the UK over the next decade. In return, the UK will lower tariffs on certain products, enabling 99% of Indian exports to enter the UK market duty-free. This agreement is poised to enhance trading ties between the two economies, which currently account for only 2% of India's total trade volume.

The partnership has been deemed underutilized given the potential of both nations. The deal is expected to boost sectors like textiles, marine products, and engineering goods, while also offering relief to exporters facing uncertainties due to global economic challenges like the COVID-19 pandemic and Brexit.

(With inputs from agencies.)