What's Happening?
The India-UK free trade agreement (FTA) has opened up a $37.5 billion market for Indian farmers, providing preferential access to the UK agricultural market while protecting sensitive sectors like dairy and vegetables. The agreement offers zero duty on processed foods and marine exports, significantly reducing previous tariffs. It also creates job opportunities for Indian youth in sectors such as IT, finance, and consultancy, with duty-free access to the UK market. The FTA simplifies customs procedures and provides equal treatment for Indian businesses, enhancing procurement access and visa clarity for skilled professionals.
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Why It's Important?
The India-UK FTA is a major boost for India's agricultural and service sectors, offering new export opportunities and job creation. By reducing tariffs and providing duty-free access, the agreement enhances competitiveness for Indian products in the UK market. It also supports India's MSMEs by allowing them to bid for UK government contracts, fostering economic growth and development. The FTA's provisions for skilled professionals improve mobility and access to the UK, benefiting sectors like textiles and clothing.
Beyond the Headlines
The FTA includes a Double Contributions Convention, ensuring social security contributions are paid in one country at a time for employees moving between the UK and India. This provision benefits Indian workers in the UK, offering a three-year exemption from social security contributions. The agreement also encourages greater European defense integration and self-sufficiency, aligning with broader geopolitical shifts.
