UK–India FTA: A Sectoral Crossroads of Winners, Losers, and Lessons
After more than three years of tough negotiations, the UK and India have officially sealed their historic Free Trade Agreement (FTA)—a landmark post-Brexit win for Britain and a major leap for India’s global trade ambitions.
But this deal is more than headlines and handshake photos. It’s a sector-by-sector recalibration that will shape industries, jobs, and supply chains on both sides.
What’s on the table? A lot more than tariff cuts.
1.Big Cuts, Big Gains
Tariffs on UK exports like whisky and gin—once as high as 150%—will drop to 75%, gradually reducing to 40% over the next decade.
British cars will now face just a 10% tariff, down from a prohibitive 100%. In return, 99% of Indian goods—including textiles, gems, food, and machinery—will enter the UK duty-free.
2.India’s Export Engine Gets a Boost
Indian textile and leather manufacturers, long disadvantaged by UK tariffs of 10–16%, now stand on equal footing with competitors from duty-free regions like Bangladesh. For MSMEs across Jaipur, Tirupur, or Kanpur, this means global competitiveness—and potentially, thousands of new jobs.
India’s services sector also gains ground. IT, architecture, and legal professionals will benefit from smoother visa norms and mutual recognition of qualifications. In sectors like fintech, cybersecurity, and health-tech, this could unlock a cross-border talent pipeline into the UK.
3.The UK’s Strategic Sector Wins
This deal opens major doors for UK players in spirits, autos, and finance. Diageo can now access India’s premium market more freely. Jaguar Land Rover—already Indian-owned—can better serve the growing luxury car demand with reduced barriers. But the bigger play is in climate-focused collaboration. India’s target of 500 GW in renewables by 2030 presents massive opportunities for UK firms in wind, hydrogen, and solar infrastructure. This isn’t just commerce—it’s climate alignment.
4.Mobility, Culture, and People-to-People Ties
Indian professionals in creative fields—yoga, music, culinary arts—now get easier access to the UK. A social security clause also allows Indian employees on UK assignments to skip National Insurance for up to three years, easing talent mobility.
5. What Didn’t Make the Cut (Yet)
Services like finance and legal advisory didn’t make it into this round. Nor did digital trade or environmental taxation. These will follow in a separate investment treaty. Every Gain Has Its Trade-Offs
While there’s celebration, the deal also sparks concern. Some UK farmers fear exposure to Indian imports. In India, dairy and auto part producers worry about being outcompeted. This isn’t just about negotiation wins—it’s about transition readiness.
The Real Test Begins Now
This FTA isn’t just a document—it’s a blueprint for how two complex economies can co-create value. The winners won’t be defined only by export volumes, but by agility, adaptability, and collaboration.
Call it what you will—a milestone, a strategy, or a diplomatic handshake. But make no mistake: this deal is about trade with teeth.