Farmers, MSMEs & startups gain: Goyal

Government has managed to protect the interests of farmers by keeping dairy products, such as cheese, apples, oats and vegetable oil outside the ambit of the deal, an official said. Sensitive indutrial goods such as diamonds, silver, smartphones, plastics and TV cameras are also excluded. There is longer duty cut period for oil products, ceramics, aircraft engines and engineering equipment.


For Indian consumers, the agreement could open doors to cheaper Scotch, automobiles, lamb, salmon, chocolates, biscuits and medical devices.

In return, Indian textiles, footwear, marine products, gems and jewellery and auto parts could gain from zero duty access in the UK. The full details of the agreement are yet to be made public.

"These landmark agreements will further deepen our comprehensive strategic partnership, and catalyse trade, investment, growth, job creation and innovation in both our economies," PM Narendra Modi posted, while announcing a deal.

It signals the areas where India would be willing to offer lower duty access for goods from EU and other countries with which it is negotiating trade deals, including the US.

The UK deal marks a significant breakthrough at a time when the world is grappling with Trump's tariff tantrums and signals India's intent to open avenues to push its export in other markets. It also puts pressure on other trading partners such as the European Union to move forward with the trade deal that has been under negotiation for over 15 years now, although there are signs that the trading bloc is keener than before on sealing an agreement. The UK deal itself was full of twists and turns since Modi and then UK PM Boris Johnson formally announced their intent in 2021, as the occupants of 10 Downing Street kept changing.

The agreement was finally clinched after commerce & industry minister Piyush Goyal made two trips to London last week. "This forward-looking agreement benefits our farmers, fishermen, MSMEs, startups, exporters and aligns with India's vision of Viksit Bharat 2047. It also supports the shared growth ambitions of both our nations," he said.

The agreement has 26 chapters, including areas such as labour and gender, with officials claiming that there are concessions under the proposed carbon border adjustment mechanism with the bilateral investment treaty to be finalized in the coming months.

"This is the most comprehensive free trade deal ever entered into by India and will be the gold standard for our future engagements," commerce secretary Sunil Barthwal was quoted in a statement.