India-UK trade deal signals Modi’s priorities as New Delhi eyes EU, US pacts | Reuters

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1. SS: Here is a summary of the article titled “India-UK Trade Deal Signals Modi’s Priorities as New Delhi Eyes EU, US Pacts”:

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   India–UK Free Trade Agreement: Key Highlights

   🔹 Strategic Shift

   India signed its largest-ever trade deal with an advanced economy (UK), marking a calibrated shift from protectionism to gradual market openness.

   The deal is being viewed as a template for future trade pacts with the EU, U.S., and New Zealand.

   🔹 Key Concessions by India

   Tariff cuts on British vehicles: From over 100% to 10% over 15 years under a quota system (10,000 to 19,000 units/year).

   Eased rules on pharmaceuticals and government procurement.

   Phased tariff reductions on items like whisky to protect domestic players.

   🔹 Red Lines Maintained

   No concessions on agriculture and dairy (e.g., cheese, apples, walnuts, whey).

   India will not open these sectors to any partner, including EU, Australia, or U.S., to protect millions of farmers.

   🔹 Benefits for Indian Exports

   Indian exporters gain zero-tariff access to the UK for:

   Textiles, footwear, furniture, machinery, chemicals, auto parts, and gems.

   Expected to double garment exports to the UK in 3 years.

   Opens door for a bigger EU deal in the future.

   🔹 Upcoming Challenges

   U.S. wants access to India’s dairy/agri markets, a sensitive area.

   India hopes for a deal with the Trump administration, focusing on “special and preferred treatment.”

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   Bottom Line:
   The UK deal reflects Modi’s strategic and cautious trade liberalization, balancing global integration with domestic protection. It signals India’s readiness for bigger deals, while firmly shielding vulnerable sectors like agriculture and dairy.

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