India-UK FTA: Whisky, Cars, Chocolates To Get Cheaper; Big Gains For Professionals

Following the historic Free Trade Agreement (FTA) signed between India and the UK on Thursday, Indian consumers can look forward to lower prices on a range of British goods, including cars, whisky, and chocolates. The deal also unlocks major opportunities for Indian professionals and exporters by providing easier work access to the UK and slashing duties on Indian products.

Under the agreement, tariffs on British goods entering India will be sharply reduced from an average of 15% to around 3%. This will make products like medical devices, aerospace parts, cars, chocolates, cosmetics, and iconic Scotch whisky significantly more affordable for Indian buyers.

The pact is a two-way street, offering substantial gains for Indian exports. Key sectors like textiles, gems and jewellery, seafood, leather goods, and engineering products will now enjoy near-zero duty access to the UK market. The leather industry alone expects to capture an additional 5% of the UK market within two years.

A major highlight of the deal is the enhanced mobility for Indian professionals. The agreement opens up 35 service sectors, allowing Indian talent, including freelancers, chefs, yoga instructors, and IT professionals, to work in the UK for up to two years without needing a local office. It is estimated that over 60,000 IT professionals could benefit from this annually.

Furthermore, a landmark social security agreement will exempt Indian professionals on short-term assignments from paying UK social security contributions for up to three years. Puneet Gupta, Partner at EY India, said this “will ease the financial and compliance burden for both companies and employees,” making overseas assignments more viable.

Trade policy experts have hailed the agreement as a transformative move. “Consumers on both sides will be the ultimate winners with greater choice and lower prices,” said Agneshwar Sen, Trade Policy Leader at EY India, adding that the deal is about “future-ready cooperation between two dynamic economies.”

For the UK, the agreement will make 90% of its exports to India cheaper and allow British firms to bid on large Indian government contracts. UK Prime Minister Keir Starmer celebrated the deal as a “big win for Britain” that would create jobs and boost investment.