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UK-India free trade pact takes effect, cutting most tariffs
The agreement removes tariffs on 99.0% of Indian exports and lowers duties on 90.0% of British goods, with early benefits expected from tariff cuts and customs steps.
India’s free trade agreement with the United Kingdom is set to take effect on Wednesday, aiming to provide immediate tariff relief for businesses in both countries while testing how well the deal can be implemented in practice, according to SCMP Economy.
The pact is expected to benefit UK exports including luxury vehicles and spirits, while Indian textiles and leather products are set to gain as tariffs are eliminated on 99.0% of exports from India and duties are reduced on 90.0% of British goods, analysts said.
Christopher Blackburn, a London based analyst, said the earliest impact should come from tariff reductions, simplified customs procedures, and improved market access in both the UK and India.
SCMP Economy also notes analysts view the longer term value as dependent on whether governments and businesses manage customs compliance, product standards, and other practical barriers, with Blackburn describing the deal as a practical blueprint for addressing tariffs, services, people mobility, and regulatory cooperation.