Scotch, Salmon, & Software Jobs: What The India-UK FTA Deal Brings To Your Plate & Payslip

India and the United Kingdom have finally inked a long-awaited Free Trade Agreement (FTA) after three years of negotiations. The deal was formalised in London on Thursday, during Prime Minister Narendra Modi's visit to the UK, where he met British Prime Minister Keir Starmer. The agreement was signed by Minister of Commerce and Industry Piyush Goyal and UK’s business and trade secretary Jonathan Reynolds.

The ambitious deal, expected to boost annual trade by $34 billion, aims to reduce tariffs, enhance market access, and provide significant employment opportunities across both nations.

What Gets Cheaper for Indian Consumers

Indian buyers can now expect a drop in prices of popular UK imports such as chocolates, cars, Scotch whisky, salmon, biscuits, and cosmetics. Tariffs on these goods will be significantly slashed; for instance, British car imports will see duties fall from 15 per cent to just 3 per cent. Electric vehicles will benefit even more dramatically, with tariffs dropping from a steep 110 per cent to just 10 per cent within a quota.

Whisky lovers, too, have reason to cheer. Import duty on Scotch will drop from 150 per cent to 75 per cent immediately, and eventually down to 40 per cent over the next decade. The FTA also covers aerospace parts, soft drinks, and medical devices, which will be more affordable and accessible in India.

India's IT Talent, Freelancers, & Chefs Get A Boost

The deal isn’t just about goods; it opens major doors for Indian professionals. According to the commerce ministry, over 60,000 IT professionals could benefit annually. Notably, Indian workers will now be able to work in the UK across 35 sectors for up to two years, even without an office base there. Major IT firms such as Infosys, TCS, Wipro, HCL Technologies, and Tech Mahindra stand to benefit.

Freelancers and gig workers, from yoga instructors to musicians, are also covered. “Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change,” said Prime Minister Keir Starmer.

Another crucial win for Indian professionals: the agreement waives social security payments in the UK for up to three years, significantly improving take-home income.

What The UK Gains

For the UK, the FTA unlocks a huge export market and access to India’s expansive procurement ecosystem. British companies will be able to bid on Indian government tenders worth over Rs 2 billion, across non-sensitive sectors, potentially opening access to around 40,000 tenders every year valued at approximately Rs 4.09 lakh crore.

Tariff cuts have also been secured on 90 per cent of Indian imports, with 85 per cent of them set to become fully duty-free within ten years. This means UK households can expect lower prices on everyday goods like apparel, footwear, and groceries.

As many as 2,200 new jobs could be created in the UK directly due to the agreement, alongside a potential wage boost totalling £2.2 billion annually. Already, 26 British companies have announced new business ventures in India in response to the deal.

This trade pact, steeped in economic opportunity and geopolitical cooperation, marks a new chapter in India-UK relations, one where cheaper chocolates and cross-border careers go hand in hand.

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