On 6th May 2025, India and the United Kingdom signed a historic Free Trade Agreement (FTA), marking an important milestone in economic partnership. The ‘landmark’ deal is not only first of its kind, but also promises more jobs, trade and innovation. PM Modi also wrote on twitter to make this big announcement. This news feature covers the salient features, positives and implications of the seminal agreement.
What is a Free Trade Agreement?
A Free Trade Agreement (FTA) is an agreement between two nations or multiple nations which gives the rights to lower or eliminate the custom duties on the majority of goods. It also reduces non-tariff barriers on imports, multiplying trade and investment between participating nations.
India UK FTA Top Features Simplified
- The FTA between India and UK removes tariffs from the export of Indian goods into the UK market, making it easier to compete. In terms of numbers, the UK has eliminated tariffs on 99% of the goods which covers 100% of the trade value. It means Indian goods will become cheaper and more attractive in the UK, boosting sales and job opportunities for the Indian people.
- The FTA provides an opportunity to the manufacturing industries including textile, marine, product, leather, sports, goods, toys and others to grow in the foreign market. It will also have a positive impact on the overall market cap of the industries as well as boost the overall growth of the nation.
- The FTA will give access to a huge amount of employment not only in India but also in the UK as well. When the UK starts to invest in the country, it will certainly generate a large amount of employment for the common people, boosting the overall GDP of the nation.
- The best part of the agreement is that it is a significant boost for the nation in terms of receiving services comprising IT, financial services, educational services and other professional services, which will certainly give a boost to the technical workforce of the nation in terms of job creation.
- The FTA makes it easier for professionals in India to work temporarily in the UK and vice versa. These job profiles include Contractual Service Suppliers, Business Visitors, Investors, Intra Corporate Transferees, Partners and dependent children and Independent professionals.
- The FTA has also enabled Indian companies to get an easier access to the UK market in terms of digitally delivered services in the field of architecture, engineering, telecommunication and computer based services.
- One of the major highlights of the FTA is the introduction of a rule called the Double Contribution Convention. This rule claims to nullify the UK social security contribution (like taxes, pensions and insurance) to Indian people working temporarily in the UK market and their employers. This huge cost saving would help them to compete in a better way in the UK market.
What it means for the UK: In return the UK also gets to access the huge possibilities to expand in the Indian market. Moreover, the UK can also import low cost raw material from India to boost their sales globally. Additionally, UK consumers will get an option to buy things at a cheaper price. This trade agreement offers multiple benefits to both the nations. It has been projected that the current trade value of $60 billion USD between India and the UK is all set to double by 2030.
What Top Industry Leaders Are Saying
- Saif Malik – CEO, UK and Head of Coverage, UK, Standard Chartered, said:
“The UK-India Free Trade Agreement is a significant achievement. It will create new opportunities for UK and Indian businesses, enable greater access to one of the world’s largest and most dynamic markets, and drive growth and innovation across the UK-India corridor.”
“We welcome this strong commitment to partnership and prosperity.”
- Markus Kessler, Managing Director, UPS, UK, Ireland and Nordics, said:
“We welcome the announcement of this important agreement between two countries that are both vital markets in our global network.”
“We look forward to continuing to help businesses of all sizes across the UK reach new customers in one of the world’s most populous and dynamic countries.”
- Deepak Nath, CEO, Smith+Nephew, said:
“Given the size of the Indian economy and its healthcare system, India is an important location for Smith+Nephew. The Free Trade Agreement offers the potential to build trading links in the healthcare sector.”
“We hope that the Free Trade Agreement will enable Smith+Nephew’s innovative medical technologies to support more healthcare professionals to return their patients to health and mobility.”
- William Crawford, Director of Concrete Canvas Ltd, said:
“India is a dynamic and vibrant economy and an increasingly important market for Concrete Canvas products. A UK-India FTA will help to accelerate our plans for growth by reducing trade barriers and making us more competitive.”
“This is welcome news for both UK and Indian businesses!”
Challenges and Criticisms
- Despite its positive aspect, there are concerns. In Britain, there are criticisms from opposition parties like the Conservatives and Liberal Democrats about the social security exemption, claiming it might enable Indian workers to be hired at lower cost, undermining British labour. Kemi Badenoch, the leader of the opposition, labeled it as a ‘two-tier tax system’. Britain argues in return that there are exemptions like it with 17 nations, including the EU and US.
- In India, the UK’s Carbon Border Adjustment Mechanism (CBAM) is of concern, potentially offsetting benefits to Indian exporters unless resolved, according to the Global Trade Research Initiative’s Ajay Srivastava.
The Real Deal of Life
The FTA between nations is a way of boosting trade and economies of nations by giving them a greenfield playground to expand themselves globally. However, for an individual, particularly a soul, the meaning of freedom is a lot deeper than it seems. The bigger picture of freedom for a soul transcends every worldly comfort. It is primarily linked to the liberation of a soul from the cycle of birth and death, achieved solely through devotion of Supreme God Kabir as outlined in our Sacred Scriptures.
Today, the method of worship offered by Jagatguru Tatvdarshi Sant Rampal Ji Maharaj is not only unique but it is also inherited from the verses of our holy scripture, making it completely authentic. The testimony of His authenticity lies in the benefits attained by His countless devotees through the method of worship given by Him which includes the extension of life as well. He is the only one on this planet Who says the effect of the karmic bondage can be erased by the method of worship given by Him, which is a bigger statement in itself.
In today’s scenario, it has now become magnificently easy to gather devotees in the name of faith – simply by memorising and reciting some scriptural verses, but their true essence is not known to everyone. The article looks to send a clear message – don’t confuse yourself in gathering stones while searching for diamonds. The path to ultimate peace and the solution to your every hardship is with Sant Rampal Ji Maharaj. Understand the path enlightened by Him and make your life wonderful.
For more information about the path shared by Sant Rampal Ji Maharaj visit His website www.jagatgururampalji.org or watch His spiritual lessons at ‘Sant Rampal Ji Maharaj’ youtube channel.
