What are the major features of the India–UK Free Trade Agreement 2025? Analyse their likely economic implications for India’s export competitiveness.
Kartavya Desk Staff
Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
Q4. What are the major features of the India–UK Free Trade Agreement 2025? Analyse their likely economic implications for India’s export competitiveness. (10 M)
Difficulty Level: Medium
Reference: IE
India and the United Kingdom inked a Free Trade Agreement (FTA) on Tuesday (May 6), bringing to an end around three years of negotiations. Why the question: The India–UK FTA 2025 was recently signed, making it India’s most comprehensive trade pact with a G7 country. It has major implications for tariff liberalisation and export competitiveness. Key demand of the question: The question requires outlining the key features of the India–UK FTA 2025 and analysing how these provisions may influence India’s ability to compete in global export markets. Structure of the Answer: Introduction Briefly mention the significance of the FTA being India’s first major post-Brexit agreement with a developed economy. Body Mention key features like zero-duty access, tariff reduction, quotas, mobility, and services roadmap. Analyse the likely impact on India’s export performance, especially in labour-intensive sectors, value-added goods, services, and trade diversification. Conclusion Suggest that the FTA can enhance India’s trade leverage if complemented with institutional and regulatory reforms.
India and the United Kingdom inked a Free Trade Agreement (FTA) on Tuesday (May 6), bringing to an end around three years of negotiations.
Why the question: The India–UK FTA 2025 was recently signed, making it India’s most comprehensive trade pact with a G7 country. It has major implications for tariff liberalisation and export competitiveness.
Key demand of the question: The question requires outlining the key features of the India–UK FTA 2025 and analysing how these provisions may influence India’s ability to compete in global export markets.
Structure of the Answer:
Introduction Briefly mention the significance of the FTA being India’s first major post-Brexit agreement with a developed economy.
• Mention key features like zero-duty access, tariff reduction, quotas, mobility, and services roadmap.
• Analyse the likely impact on India’s export performance, especially in labour-intensive sectors, value-added goods, services, and trade diversification.
Conclusion Suggest that the FTA can enhance India’s trade leverage if complemented with institutional and regulatory reforms.