The India-UK Free Trade Agreement (FTA) was signed and formalised on Thursday. Commerce and Industry Minister Piyush Goyal and Secretary of State for Business and Trade Jonathan Reynolds signed the agreement in the presence of Prime Minister Modi and Prime Minister Keir Starmer of the UK.

The India-UK FTA marks a significant milestone in India’s engagement with major developed economies. “UK rolls out the red carpet for ‘Made In India’,” Piyush Goyal posted on X. The agreement is expected to boost the bilateral trade between the two countries by $34 billion annually.

Here’s what the India-UK FTA offers to Indians:

To professionals and workers

“Big overseas avenues open up for India’s skilled workforce,” the government said, adding that the agreement provides greater market access in IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade.

Indian professionals, including those deployed by companies to work in the UK across all service sectors, professionals deployed on contracts such as architects, engineers, chefs, yoga instructors, and musicians, will benefit from simplified visa procedures and liberalised entry categories, making it easier for talent to work in the UK.

1. 75,000 Indian professionals are exempted from UK social security payment for 3 years. Indian professionals can work in 35 UK sectors for 24 months, even without a UK office. More than 1800 chefs, yoga experts and musicians can work in the UK each year.

Union minister Piyush Goyal said, “People from India who come to the UK to work for a short duration suffered around 25 per cent losses earlier–they did not receive any benefit or pension for social security payments. Now, they will get to deposit that money in their PF account in India. So that this money will be their savings and not go to waste.”

2. Independent professionals and service providers in sectors such as IT, engineering, and architecture will be allowed to work in the UK for up to 12 months. Applicants must meet UK immigration requirements, including salary thresholds and documentation, to be eligible.

3. Access to 36 service sectors with no economic needs test for Indian firms and freelancers

4. Indian investors and graduate trainees will also continue to benefit from existing UK schemes, with eligibility subject to prevailing immigration rules.

Apparel and textile

Nearly 1000% of India’s trade value will be duty free

1. Indian exporters, particularly in textiles and apparel, are expected to gain from tariff reductions. Firms such as Welspun India, Arvind Ltd, Raymond, and Vardhman may benefit from duty-free access to the UK market.

2. From 16% to zero: Duty free access for leather and footwear

3. Duty-free access to UK’s gems and jewellery market

Medical sector

1. Zero duty market access for Indian generic drugs.

2. ‘Made in India’ medical devices will attract no duty. Surgical instruments, diagnostic equipment, ECG machines, X-Ray systems exports to gain.

Farmers, exports and blue economy

The government anticipates more income to farmers and increased rural employment.

1. 99% of Indian exports to the UK will enjoy zero-duty access

2. Indian farmers get access to the UK’s $37.5 billion agri-market and premium buyers. The FTA also ensures duty-free exports on nearly 95% of agricultural products, while fisherfolk gain from Zero Duty on 99% of marine exports, boosting their incomes.

3. Duty-free access for our instant coffee, tea, spices, and rubber, and processed goods like mango, pulp, pickles, pulses and ready to eat meals. Exports of Darjeeling tea from West Bengal and Araku coffee from Andhra Pradesh are likely to soar.

4. No tariff concession on sensitive sectors (Dairy, oats, apples, edible oils). This agreement will also provide Indian consumers high-quality goods at competitive prices.

5. Zero-duty for 99% of marine exports. Coastal states such as West Bengal, Odisha, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa, Maharashtra and Gujarat to benefit from export-led job creation.

6. Indian fishermen to have greater expansion opportunity into the UK’s $5.4 billion marine market.