India-UK FTA: From Basmati Rice To Whisky — Here's What Gets Cheaper

India and the United Kingdom on Thursday signed a landmark Free Trade Agreement, officially called the Comprehensive Economic and Trade Agreement, aimed at deepening economic ties and boosting bilateral trade. The deal was signed in London in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.

Commerce Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds inked the pact, which significantly lowers tariffs on a range of goods exchanged between the two countries.

Here's what is set to turn cheaper:

• In India, prices are set to fall on popular British imports such as Scotch whisky, cars, cosmetics, medical devices, chocolates, soft drinks, and biscuits.

• Tariffs on UK products will drop from an average of 15% to 3%, according to an official release. UK-manufactured cars, which currently face import duties of over 100%, will now see duties reduced to 10% under a quota system.

• The duty on Scotch whisky has been halved from 150% to 75%.

Here are the items set to face lower tariffs:

• Indian exports like textiles, leather goods, gems and jewellery, auto parts, furniture, and machinery will enjoy lower tariffs in the UK.

• Items such as gold and diamond jewellery, garments, leather products, and home textiles will be allowed into the UK at zero tariff.

• Britain will also slash duties on Indian basmati rice, processed foods, shrimp, spices, and tea.

The UK expects to gain from expanded operations of Indian companies and increased access to India's consumer market. The agreement is projected to create over 2,200 jobs in Britain and boost collective wages by up to £2.2 billion annually. UK consumers could also benefit from cheaper clothing, shoes, and food.

The UK government said the pact is expected to raise its exports to India by nearly 60% over the long term, equivalent to £15.7 billion in additional trade by 2040.