You could soon enjoy a glass of Goa Feni in the UK, after wrapping up your day as a chef at a London restaurant. Why? Because the Indian ethnic beverage just said cheers to Scotch whisky, as the world’s fourth and sixth largest economies signed a historic trade deal.
India-UK FTA Signed
India and the United Kingdom had been in talks for almost three years to crack this deal. And they succeeded in May this year. Cut to now, and the deal has been inked in London in the presence of Prime Minister Narendra Modi and British PM Keir Starmer.
CETA goal: Double India-UK trade by 2030
But what’s the big deal? The size of trade between India and the UK currently stands at $56 billion. With this new pact, called the Comprehensive Economic and Trade Agreement, or CETA, in place, the two sides aim to double their trade to over $100 billion by 2030.
But how will they achieve it? Well, the free trade agreement will allow for relatively freer movement of goods, services and professionals between the two countries.
CTA benefits for Indian businesses
For example, the UK will not levy any duty on 99% of Indian goods. This means a huge boost to India’s exports to Britain. Indian gems and jewellery, leather, chemicals, agro products, medical devices and many more are set to go duty-free in the UK.
GI protection for Indian goods
It doesn’t stop there. With Geographical Indication or GI protection for over fifty Indian products in the UK, Kolhapuri chappal, Goa feni, Kerala toddy, Shahi litchi, and Mithila makhana stand to gain disproportionate advantages and access to shelf space in British stores.
So, if you are an Indian entrepreneur, this may be your moment to explore the opportunities unlocked by the FTA.
Easier movement of Indian professionals
And if you are a professional aspiring to take up a short-term gig in the UK, there’s good news for you too. Under the free trade pact, independent professionals in sectors such as IT will be allowed to work in the UK for up to 12 months.
And there will be a quota of 1,800 visas in the UK’s cultural and wellness sectors for professionals such as chefs, yoga instructors, and Indian classical musicians.
CETA benefits for Indian consumers
Beyond these, there’s also a lot for you, if you are an Indian consumer. British products will become cheaper in India. This as India is set to cut tariff on around 90 per cent of British products, bringing down average tariff from 15 per cent to 3 per cent.
Salmon, cars, Whisky to get cheaper
If you like your salmon, that’s set to become way cheaper as it's part of 64 per cent of British products that will attract no duty.
If you are someone eyeing a Range Rover, then you could wait for the duty cuts to kick in as that’s set to fall from 110% now to 50% in the first year. This will eventually come down to 10% by the end of the fifth year, though under a quota.
And duty on Scotch whisky will first be halved to 75 per cent and will be reduced to 40 per cent over ten years. The list of British products that will become cheaper here is long: chocolates, biscuits, perfumes, cosmetics and a lot more.
British Parliament’s approval needed
Now, all eyes will be on the British Parliament to approve this deal. Once it’s done, you can roam around in a Kolhapuri chappal bought in the UK, while teaching yoga in Liverpool.
