India-UK Free Trade Agreement 2025: What Gets Cheaper for Indians – Whisky, Cars, Chocolates, and More

The newly signed India-UK Free Trade Agreement (FTA) marks a pivotal chapter in the economic alliance between India and the United Kingdom. This ambitious trade pact—formalized in London in July 2025—signals a fresh era of market opportunities, benefitting industries, professionals, and everyday consumers in both countries. With its focus on eliminating duties, simplifying visa norms, and unlocking new business avenues, the deal is crafted to boost bilateral trade, create jobs, and introduce a range of global products to Indian shoppers at much lower prices.

How Will the FTA Benefit Indians?

The free trade agreement offers a raft of benefits to Indian consumers, professionals, and exporters. Here’s how:

Everyday Items That Get Cheaper in India

The most tangible benefit for Indian consumers is the price drop on several popular British products, owing to a drastic reduction in import tariffs. Here’s what to expect:

• Whisky: The hefty duty on Scotch whisky is slashed by half, making this premium spirit more affordable for Indian drinkers.
  
• Chocolates and Confectionery: Chocolate-lovers will see their favorite UK imports becoming much more pocket-friendly.
  
• Cars: The import duty on electric vehicles (EVs) and other British cars is set to drop from an average 15% to about 3%, offering significant savings for Indian car buyers.
  
• Other Goods: Along with cars and chocolates, tariffs are also reduced on medical devices, cosmetics, and aerospace components.
  

Better Deals for Indian Exporters

Indian businesses are set to gain unprecedented access to the UK market:

• Textiles, Gems & Jewellery: Almost all such products can now enter the UK at near-zero duty.
  
• Seafood, Leather Goods, Processed Foods: These sectors anticipate higher demand, with the leather industry expecting to expand its UK market share by 5% in two years.
  
• Engineering, Electronics, Chemicals: Engineering and electronics exports may double by 2030, while chemical exports could rise by 40% in the coming year.
  

Enhanced Scope for Indian Professionals

Indian talent across diverse fields will find it easier to live and work in the UK:

• 35 Sectors Newly Opened: Professionals in fields such as software, education, yoga, and the arts can work in the UK for up to two years, without the need for a local employer.
  
• Easier Social Security Rules: Indians on short assignments can avoid UK social security payments for up to three years, reducing financial and compliance burdens.
  
• Freelancers and Entrepreneurs: Chefs, musicians, and contract-based workers can tap into new opportunities, with over 60,000 IT professionals expected to benefit annually.
  

Wider Benefits for India and the UK

• Boost to Bilateral Trade: The pact aims to drive an increase of nearly $34 billion annually.
  
• Job Creation: Elimination of tariffs on Indian exports is expected to create jobs in labor-intensive sectors and boost economic growth.
  
• Market Access: Indian firms can enter new business contracts, while UK companies will be allowed to bid on Indian government projects.
  
• More Choice and Lower Prices: Enhanced competition and supply chains mean Indian consumers get to enjoy more options at affordable prices.
  

What’s in It for the UK?

While Indian markets welcome cheaper British goods, the UK stands to gain too:

• 90% of UK Exports Made Cheaper: With 85% becoming duty-free within a decade.
  
• Bidding for Indian Government Contracts: UK companies can access more than 40,000 Indian tender opportunities annually.
  
• New Ventures and Investments: 26 UK companies are launching new projects in India, while Indian firms plan nearly 6 billion in UK investments.
  
• Financial Services and IP Rights: UK firms will enjoy treatment on par with Indian companies in financial sectors, and intellectual property provisions are strengthened.
  

This free trade agreement is not just about slashed tariffs—it’s about building a long-term partnership. It is designed to help both countries adapt to global economic shifts, promote sustainable growth, and foster innovation through open markets.