Key Provisions of the India–UK FTA

• Tariff Reductions: India will eliminate tariffs on 99% of British goods, including whisky, automobiles, and medical devices. Conversely, the UK will reduce tariffs on Indian exports such as textiles, leather, and engineering goods. Notably, whisky tariffs in India will decrease from 150% to 75%, with a further reduction to 40% over the next decade.
• Trade Volume Increase: The FTA is expected to boost bilateral trade by £25.5 billion annually by 2040, contributing an additional £4.8 billion to the UK's GDP each year.
• Labor Mobility: The agreement includes a "Double Contribution Convention," exempting Indian professionals temporarily posted to the UK from paying national insurance contributions for up to three years. This provision aims to facilitate the movement of skilled labor between the two countries.
• Investment Protections: An investment treaty accompanying the FTA will allow companies to sue either government if they believe policy changes unfairly harm their investment or profits. This mechanism is designed to protect investors against potential unfair treatment under local laws.

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