Boosting Trade: India-UK Free Trade Agreement Lifts Key Sectors

India and the UK have signed a free trade agreement, expected to enhance bilateral trade by USD 34 billion annually. This deal, beneficial for sectors like textiles, leather, and automobiles, allows 99% of Indian exports to enter the UK duty-free, while reducing tariffs on British goods, including cars.

Shares of various companies across sectors like textiles, leather, pharmaceuticals, and automobiles saw gains on Thursday following the landmark signing of a free trade agreement between India and the UK. The deal is poised to boost exports from labor-intensive sectors while making British products more affordable in India.

The FTA marks a substantial leap in the UK-India relationship, promising to enhance bilateral trade by an estimated USD 34 billion annually. It grants 99 percent duty-free access for Indian exports to the UK, significantly benefiting vital sectors such as textiles, leather, and agriculture.

Despite a buoyant start, the 30-share BSE Sensex could not maintain its upward momentum, closing down by 542.47 points at 82,184.17, while the 50-share NSE Nifty ended 157.80 points lower. Nevertheless, the FTA is expected to facilitate comprehensive market access and tariff reductions, particularly benefiting companies like Jaguar Land Rover with reduced automotive import tariffs in India.

(With inputs from agencies.)