India-UK Free Trade Agreement to Bring ‘Seismic Shift’ in Bilateral Trade Ties

India’s upcoming Free Trade Agreement (FTA) with the United Kingdom is poised to usher in a “seismic shift” in trade relations between the two countries, officials familiar with the matter said on Thursday. The landmark pact is expected to eliminate tariffs on nearly 99% of tariff lines, covering close to 100% of the trade value between the two nations.

The comprehensive deal is set to significantly enhance market access and streamline trade in key sectors. It will allow British firms to export high-demand products such as whisky, automobiles, and machinery to India with fewer trade barriers, while simultaneously opening up the UK market to a wide range of Indian agricultural and manufactured goods.

Agriculture and allied sectors are among the major beneficiaries, with Indian exporters gaining broader access to the UK for high-value products like fruits, vegetables, basmati rice, cereals, dairy, animal products, oil seeds, and beverages.

“This agreement is not just a trade deal; it’s a strategic step towards deepening economic engagement and boosting bilateral investment,” said a person aware of the negotiations.

The FTA, once finalised, is expected to drive economic growth, support job creation, and deepen strategic cooperation between India and the UK, both of which are key global economies.