Trade deal with UK signed ‘on India’s terms,’ 99% of exports to get duty-free access : Piyush Goyal
NEW DELHI : Union Commerce and Industry Minister Shri Piyush Goyal on Saturday described the newly signed Free Trade Agreement (FTA) between India and the United Kingdom as a “game-changer” that was finalised on India’s terms. Speaking at a press conference, Goyal said the agreement would open unprecedented opportunities for Indian exporters, farmers, MSMEs, and professionals.
“Prime Minister Shri Narendra Modi and UK Prime Minister Keir Starmer have signed a Free Trade Agreement that is the most comprehensive and important FTA India has ever signed,” Goyal said. “It has Cabinet approval here, while the UK Parliament is expected to ratify it soon.”
Amid the ongoing trade deal negotiations with US, Goyal said, “UPA government signed FTAs with our competitors, with those countries who would sell their products in India for cheaper prices to destroy India’s manufacturing sector… The FTAs signed during the UPA rule were not in the best interests of the country. FTAs signed by PM Narendra Modi are with Mauritius, Australia, EFTA countries, UAE, and now the UK. Talks are going on with other developed countries. India now signs FTAs with countries which do not compete with us, but complement us. The UK-India Comprehensive Economic and Trade Agreement will prove to be a stepping stone towards our dream of a Viksit Bharat…”
Boost for Indian exports
According to the minister, the deal ensures that 99 per cent of Indian exports to the UK will now be duty-free, giving a substantial lift to labour-intensive sectors like textiles, marine products, auto components, chemicals, and processed foods. India’s textile industry alone is expected to benefit from zero duty on over 1,143 product categories, potentially unlocking a $27 billion opportunity in the UK
Tariffs on key marine products such as shrimp and tuna will be removed, while over 95% of agricultural tariff lines, including spices, millets, and fresh produce, will also become duty-free. Thus, bolstering India’s $100 billion agri-export goal.
Addressing the Prada-Kolhapuri chappal row, Goyal said, “… When a global brand used the design of our Kolhapuri chappals, Commerce Ministry immediately took action on it. Going forward, when the Kolhapuri chappal is exported, India will get the due credit for its design. It is India’s GI product. Many global brands are expressing their desire to associate their names with India’s products and sell them in global markets. The Kolhapuri Chappal can have a business of Rs 8000-10000 crores in the international market.”
UK market access and tariff reductions
In return, India has agreed to gradually reduce tariffs on 90% of UK exports, including sensitive sectors like automobiles, whisky, and medical equipment. British carmakers will benefit from a phased tariff cut from over 100% to 10% over 15 years, while whisky tariffs will reduce from 150% to 75% and then to 40% under quota protection to safeguard Indian producers.
Additionally, UK firms will gain access to India’s public procurement market, with over 40,000 tenders worth £38 billion now open to British bidders.
The FTA is expected to double bilateral trade to $120 billion by 2030 and add £25.5 billion (~$34.5 billion) annually by 2040. Both nations unveiled the India-UK Vision 2035 alongside the agreement, pledging deeper cooperation in technology, defence, education, climate action, and innovation.
Goyal contrasted the Modi government’s FTA approach with that of the previous UPA regime, which he accused of signing unfavourable deals. “Earlier FTAs benefited our competitors. Under PM Modi, we now sign FTAs with countries that complement our strengths—not compete with them.”