Business News | India-UK FTA Not Only Boost Exports but Also Boost Economy Through Higher Remittances and Domestic Spending: Report
Get latest articles and stories on Business at LatestLY. The recently finalised free-trade agreement (FTA) between India and the United Kingdom (UK) will not only boost Indian exports and increase the mobility of Indian workers in the UK but also support India's economy through higher remittances and domestic spending noted a report by S&P Global Market Intelligence.
New Delhi [India], July 3 (ANI): The recently finalised free-trade agreement (FTA) between India and the United Kingdom (UK) will not only boost Indian exports and increase the mobility of Indian workers in the UK but also support India's economy through higher remittances and domestic spending noted a report by S&P Global Market Intelligence.
In 2024, Indian workers abroad sent home around USD 130 billion, making up 3.3 per cent of the country's GDP.
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UK remains the third-largest source of these remittances, after the US and UAE. Under the new deal, Indian ICT workers posted in UK will benefit from a waiver on national insurance contributions for up to three years, allowing them to save more and potentially send more money back home.
The FTA also promises to double trade in goods and services between India and the UK by 2030, up from USD 56.7 billion in 2024.
Indian exports, especially textiles and apparel--which face challenges in the US market--are expected to benefit from improved access to the UK market.
For the UK, the deal opens up greater access to India's fast-growing middle class, although immediate trade benefits will be seen in the beverage sector, with tariffs halved on 97 per cent of whisky and gin exports.
However, the deal excludes pharmaceutical exports, limiting some of the economic benefits for Britain. There is also a lack of clarity on how UK car exports to India will operate under the new quota system.
The agreement is part of India's larger push to secure trade pacts with key global partners. In 2025 and 2026, India aims to finalize similar deals with countries in the Gulf, Australia, Japan, Southeast Asia, and Latin America.
These efforts are aimed at strengthening India's global trade network amid shifting international trade policies.The swift signing of the India-UK deal is a significant step for the UK as well, helping the country reshape its trade relationships after Brexit and reduce supply chain disruptions.
Overall, the trade agreement is expected to strengthen economic ties between India and the UK, while also enhancing India's position in global trade. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)