India-UK trade agreement approved; Both countries signed the agreement

 

 

Delhi: India-UK trade agreement approved. Both countries signed the agreement. The two countries signed the agreement after talks between Prime Minister Narendra Modi and UK Prime Minister Keir Starmer. Indian seafood, coffee and tea will be exempted from duty. Spices, textiles and footwear will also not be subject to duty. The trade agreement will provide a boost to the export sector. The British Prime Minister stated that the agreement is beneficial to both countries

India's duty on UK products will be reduced to 3 percent. India will not provide duty exemption on dairy products, apples, etc., central government sources said.

The India-UK free trade agreement opens up the UK market, including for Indian agricultural products. The agreement will also open the Indian market for some agricultural products and vehicles from the UK. The 20 percent duty on Indian seafood products in the UK has been reduced to zero.

The UK will also import shrimp from India duty-free. Duties on spices, cashews, etc. have also been reduced. The UK is also ready to remove import restrictions on tea and coffee.

This decision may also benefit Kerala. The UK will also remove the duty of up to 70 percent on packaged food. The UK had imposed a duty of 12 percent on Indian textiles and 8 percent on chemicals. Both of these have been withdrawn. The reduction in duty on software from India will be helpful for the IT sector. The UK has also agreed to remove duties on smartphones, engineering products, dolls, sports equipment, gems, jewelry, plastics, medicines and medical devices.

Companies employing Indian employees will also be exempted from paying social security funds. The average duty on UK products in India will be reduced to 3 percent from 15 percent. Duties on vehicles and Scotch whisky will all be reduced.