• Source:JND
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India-UK Free Trade Deal Benefits: From luxury cars and chocolates to Scotch whisky and job opportunities in the UK, the newly signed India-UK Free Trade Agreement (FTA) is set to impact your wallet and your career. Whether you're a consumer, a techie, or a young professional looking abroad, this deal brings something for everyone.

The trade pact was formalised during Prime Minister Narendra Modi’s visit to the UK, where he met his British counterpart Keir Starmer on Thursday. Commerce Minister Piyush Goyal and the UK’s Secretary of State for Business and Trade, Jonathan Reynolds, signed the agreement, marking the end of three years of negotiations.

The FTA is expected to boost annual bilateral trade between India and the UK by a massive 34 billion dollar. For India, the deal is expected to support growth across sectors by creating jobs, expanding skill development, and giving Indian professionals greater access to UK markets.

It’s a win-win on both sides. British Prime Minister Keir Starmer described it as a game-changer, stating, “Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.”

Following the agreement, 26 British companies have already announced plans to launch new operations in India.

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So, What’s Getting Cheaper?

1. Day-to-Day Products

British goods such as chocolates, biscuits, soft drinks, cosmetics, lamb meat, salmon, and passenger cars will now be easier on Indian wallets. Tariffs on these items will drop from an average of 15 per cent to just 3 per cent .

2. Electric Vehicles

Thinking of importing a British electric vehicle? Good news: tariffs will be reduced from 110 per cent to 10 per cent although this will be within a specified quota.

3. Scotch Whisky and Alcohol

One of the most notable changes: import duties on whisky will be slashed from 150 per cent to 75 per cent immediately, and further reduced to 40 per cent over the next 10 years. This makes high-end spirits from the UK far more accessible to Indian consumers.

4. Medical and Aerospace Equipment

India will also benefit from cheaper imports of UK-made medical devices and aerospace components, which could improve the cost and quality of healthcare and aviation technologies.

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India-UK Free Trade Deal Benefits: What It Means for Indian Professionals

1. Access to UK Job Markets

Indian professionals will now be allowed to work in 35 service sectors in the UK for up to two years even if their firm doesn’t have a physical office there. This includes fields like IT, finance, consulting, architecture, and engineering. According to the commerce ministry, more than 60,000 Indian IT professionals could benefit every year. Companies like TCS, Infosys, Tech Mahindra, Wipro, and HCL are likely to gain the most.

2. No More Social Security Deductions (for 3 Years)

Indian professionals on assignment in the UK will be exempt from paying into UK social security for up to three years, a major relief in terms of take home pay.

3. Easier Entry for Freelancers & Creatives

The deal also opens doors for chefs, yoga instructors, musicians, and other contract based professionals to enter the UK market with fewer restrictions.

4. No ‘Economic Needs Test’ for 36 Sectors

Indian freelancers and firms will be allowed access to 36 service sectors in the UK without having to prove labour market demand, a big win for entrepreneurs and small businesses.