A long-awaited moment is finally here, India and the United Kingdom are all set to sign a historic trade deal today, in London, with Prime Minister Narendra Modi and UK PM Keir Starmer present. It’s being called a game-changer for both countries. But what does it really mean for you?
What’s the India-UK trade deal about?
This is called the Comprehensive Economic and Trade Agreement (CEPA). It’s not just about business—it’s about how the UK and India will work together on jobs, education, health, defence, and technology, but most importantly, on trade.
One of the biggest gains for Indian consumers from this deal is better access to high-quality UK products at lower prices. As India slashes import duties on a range of goods, here’s what will become more affordable in the coming years:
Whisky and gin, currently facing steep 150% duties, will see tariffs drop to 75% immediately, and then gradually reduce to 40% over 10 years. This means your favourite bottle of Scotch or premium gin could cost significantly less in the near future.
FTA to make British products cheaper for Indians
Import duties on UK-made cars, currently over 100%, will fall to just 10% under a special quota system. This starts with petrol and diesel cars, but will eventually include electric and hybrid vehicles as UK shifts to cleaner auto tech. So, expect luxury brands like Jaguar, Mini, and Land Rover to become much more affordable.
Products like face creams, shaving gels, nail polish, soaps, and perfumes will see tariffs of 10–20% removed or halved over the next few years. That means lower costs on premium UK skincare and grooming products. Brands like Boots, Primark, and Next can be seen in India.
High-end optical tools, medical devices, and scientific measuring instruments, used in labs and hospitals, will become cheaper due to lower import tariffs.
India will allow duty-free imports of UK foods like – fresh and frozen salmon, cod used for the British delicacy fish and chips and lamb. These were previously taxed heavily, but will now enter Indian markets cheaper and more easily.
Easier Movement for Indian Professionals
One of the most people-friendly aspects of the India-UK trade deal is how it simplifies mobility for Indian professionals.
Under the new agreement, Indian workers going to the UK on temporary assignments will no longer have to pay social security contributions for up to three years.
The deal also makes it easier for Indian professionals to live and work in the UK for short-term projects. For sectors like IT, finance, consulting, and skilled trades, where temporary mobility is common, this change could lead to more opportunities, more assignments, and more Indian talent making its mark in the UK.
India opens market access and public procurement contracts
But as they say, there are no free lunches.
Better access to UK firms in our good and services market would mean tougher competition to Indian firms. Local small-scale businesses may find it harder to compete, especially if foreign goods become more affordable than locally made ones.
For the first time in its history India has opened its public procurement space for foreign firms. The UK will now be allowed to bid for Indian government tenders, currently worth £38 billion a year.
UK says the deal will boost its GDP by £4.8 billion a year in the long term. Whereas India just made it easier to sell to the UK and get investments in return, but we’ll have to compete harder at home.
