Editor’s Note
**Editor’s Note:** The India-UK Free Trade Agreement, signed in July 2025, has now taken effect, promising a $34 billion annual boost in bilateral trade. With nearly 99% zero-tariff access for key Indian exports and enhanced social security for professionals, the deal aims to double trade to $100 billion by 2030.
The India-UK Free Trade Agreement (India–UK FTA), signed last year, has taken effect, expected to increase bilateral trade by $34 billion annually. It grants nearly 99% zero-tariff access for Indian exports in textiles, jewelry, engineering products, and processed foods, while also providing social security for Indian professionals working in the UK. The goal is to double trade to $100 billion by 2030.
The India-UK Free Trade Agreement (India–UK FTA), signed in London in July last year (2025), has officially taken effect, expected to bring a $34 billion annual increase in bilateral trade. This agreement is seen as a comprehensive economic trade agreement (CETA) with win-win potential to deepen economic cooperation and create new business opportunities between India and the UK.
According to reports, the agreement provides nearly 99% of Indian exports with zero-tariff market access, covering key sectors such as textiles, leather, jewelry, engineering products, seafood, chemicals, and processed foods. Jewelry exporters anticipate a 230% surge in shipments to the UK within three years, reaching $2.5 billion; engineering product exporters expect sales to double to $7.5 billion over the next four to five years.
Additionally, the agreement grants zero-tariff access for Indian agricultural products, except for specific items like chicken, pork, eggs, rice, and sugar. Of the UK’s over $90 billion agricultural import market, 97.1% of processed food tariff lines will be opened to India, giving Indian exporters an immediate competitive edge. Meanwhile, sensitive agricultural products such as dairy, vegetables, apples, edible oils, oats, and millet are included in a safeguard list, with the UK receiving no tariff concessions on these items.
In the services sector, the agreement strengthens India’s market access and regulatory certainty in areas such as information technology, financial services, healthcare, education, engineering, telecommunications, and consulting. A social security agreement will also be implemented, exempting Indian professionals temporarily working in the UK from dual social security contributions for five years, benefiting over 75,000 professionals and 900 companies, thereby enhancing the global competitiveness of India’s workforce.
The foundation of this trade agreement stems from the India–UK Enhanced Trade Partnership and Roadmap 2030 launched in May 2021, which set a target to double bilateral trade to $100 billion by 2030. After 14 rounds of negotiations, the 30-chapter agreement was finalized on May 6, 2025, and signed in July of the same year, witnessed by Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer.
For Taiwanese businesses, the signing of such large-scale free trade agreements highlights the rapid reshaping of the global trade landscape. By deepening ties with major trading partners, countries are actively seeking market diversification and economic growth. For trade-dependent Taiwan, this trend also reminds businesses and policymakers to continuously monitor international trade agreement developments and seek strategic cooperation opportunities to strengthen Taiwan’s resilience and competitiveness in global supply chains.
