Skip to content

India-UK FTA Concluded: Tariff Cuts and Social Security Pact

7 May 20251 min read
INTERNATIONAL AFFAIRSIndia-UK FTAConcluded: TariffCuts and SocialSecurity Pact7 May 2025safalsetu.com

Why in the news

The two Prime Ministers declared the India-UK trade deal concluded, together with a social security arrangement.

Key facts

  • Zero-duty UK access helps textiles, toys, leather, gems and jewellery, marine products and footwear.
  • Double Contribution Convention: Indian professionals in the UK get a 3-year exemption from social security payments, benefiting over 60,000 IT staff with possible 20% salary-cost savings.
  • Dairy, apples and cheese stay outside concessions to protect farmers.
SideGains
IndiaTextiles, leather, gems, pharma, processed foods, FMCG, healthcare
UKCheaper exports of whisky, gin, cars, medical devices, cosmetics, chocolates, lamb

Significance

  • Bilateral trade projected to rise by 25.5 billion pounds.
  • Expected to aid jobs, investment and supply-chain integration.

Exam angle

  • Social security pact: Double Contribution Convention.
  • Excluded items: dairy, apples, cheese.

Test yourself

1. Under the India-UK FTA, what share of Indian exports gets zero-duty access to the UK?

The notes state zero-duty access for 99% of Indian exports.

2. How long is the social security exemption for Indian professionals in the UK under the pact?

The Double Contribution Convention gives a 3-year exemption.

3. Which items were excluded from concessions in the India-UK FTA to protect Indian farmers?

Dairy, apples and cheese were kept out of concessions.