Daily Briefing: Highlights of the UK-India trade deal

Indian Express

25-07-2025

Good morning,
Prime Minister Narendra Modi, who is visiting London, has signed the landmark free trade agreement with his British counterpart, Keir Starmer. The Comprehensive Economic and Trade Agreement (CETA) comes against growing volatility triggered by US President Donald Trump's tariffs. The CETA promises to enhance bilateral trade, provide Indians with greater access to British products, ranging from cosmetics to cars, and allow for tariff-free access to 99% of Indian imports to the UK.
Here's a look at some significant gains for India and the UK:
👉 The UK will eliminate import duties of up to 20% on job-creating sectors such as textiles, footwear, gems and jewellery.
👉 Indian food sectors, including seafood, dairy, and meat, will enjoy zero duties. Tariffs on tea and coffee have also been scrapped.
👉 In a first, India has allowed UK firms to participate in government tenders, giving them Class Two status under 'Make In India' rules, which require 20-50% domestic value addition.
👉 India has also halved the import tariffs on Scotch whisky, from 150% to 75%. Premium brands like Chivas Regal, Ballantine's, Glenlivet, Glenfiddich, and Johnnie Walker are set to become more affordable. This gives Scotch distillers access to the world's largest whisky market by volume; however, the Indian alcoholic beverage industry has raised concerns over potential dumping.
Also read: The history behind Scotch whisky
👉 You may see more British luxury vehicles on the roads as the CETA slashes duties on internal combustion engine cars to 30-50%. However, the benefit will be quota-based and apply to a limited number of vehicles. The duties will be further reduced gradually over the years. Zero-emission cars will also see reduced tariffs, depending on their cost, benefiting automakers like Jaguar Land Rover, a manufacturer of SUVs.
👉 Lastly, the UK and India have also agreed to ease the exchange of services. They will now require temporary employees to pay social security contributions only in their home countries, which would mean greater take-home salaries.
Where the chips fall: The abrupt resignation of Jagdeep Dhankhar as Vice-President hints at growing differences between the ruling BJP and the man it once welcomed as 'kisan putra' after his election in 2022. His acceptance of the Opposition's impeachment motion against Justice Yashwant Varma, much to the government's chagrin, may not have been the sole reason for his exit, but was probably the last straw, writes contributing editor Neerja Chowdhury. The fallout from Dhankhar's exit is still unfolding, but Chowdhury opines that the next Vice President is unlikely to be someone outspoken.
🎧 For more on Dhankhar's resignation, tune in to the latest '3 Things' podcast episode, where we discuss the developments with our political reporter, Liz Mathew.
Fall and fall: On Thursday, the Enforcement Directorate (ED) searched over 35 locations in Mumbai linked to industrialist Anil Ambani, as part of a money laundering probe into an alleged Rs 3,000 crore bank loan fraud. The latest setback to the Reliance Anil Dhirubhai Ambani Group comes at a time when it was looking to recover from a years-long turbulent journey marked by debt defaults, financial losses, and insolvency proceedings in the wake of the Ambani brothers' split.
Data loss: The April security breach at the Indian Council of Agricultural Research (ICAR), the country's apex organisation in the sector, resulted in the loss of 'crucial data' related to recruitment and research projects. Here's what an ICAR committee report states.
Rules of the game: The National Sports Governance Bill, introduced by Sports Minister Mansukh Mandaviya in the Lok Sabha on Wednesday, proposes two significant changes to how sports are governed in the country. It will establish a National Sports Board with broad powers to oversee the functioning of federations, as well as a National Sports Tribunal to resolve disputes. My colleague, Mihir Vasavda, spoke with eminent sports lawyer Nandan Kamath about the key aspects of the Bill and why it was necessary.
Smokescreen? The Maharashtra House cleared a Special Public Security Bill earlier this month to curb 'Left Wing Extremism (LWE)'. Columnist Suhas Palshikar points out the gaps in the legislature's language, which could leave social activists vulnerable and criminalise dissent. Read.
♟️ The Women's Chess World Cup has reached an interesting stage, with the final battle set between two Indian candidates. The battle is also intriguing because on one side is a young, ambitious 19-year-old who just defeated a former world champion, and on the other is the first Indian woman to become a grandmaster. At 38, Koneru Humpy is twice the age of Divya Deshmukh, who just completed the first of three norms required to become a grandmaster — and India's fourth woman grandmaster.
That's all for today, folks! Happy weekend-ing!
Sonal Gupta