Informist, Saturday, Jul. 26, 2025

NEW DELHI - The free trade agreement signed recently between India and the UK has a clause for review of the deal after five years, Commerce and Industry Minister Piyush Goyal said Saturday. The deal signed on Thursday is likely to be ratified by both the nations and implemented in a year.

New Delhi and London can review the trade deal after five years, if both sides agree, Goyal said at a press briefing. So, in the future, if the UK plans to impose non-tariff barriers like Carbon Border Adjustment Mechanism, the trade deal can be reviewed, Goyal said.

Currently, there is no clause on the Carbon Border Adjustment Mechanism within the India-UK FTA framework, as there is no point in discussing something that is not in effect, Goyal said. But India would not shy away from retaliating if the UK, or any other nation, decides to impose a non-tariff barrier like carbon tax in the future, Goyal added.

In fact, there is a rethink within the European Union as well on the imposition of carbon tax, Goyal said. The idea of levying carbon tax on imports originated in the EU.

Nearly 100% of India's exports to the UK will get a duty-free market access under the Comprehensive Economic and Trade Agreement signed between the two nations in the presence of Prime Minister Narendra Modi and his UK counterpart Keir Starmer. Under the free trade agreement, India has committed to cut duty on 90% tariff lines while the UK would slash duty on 99% tariff lines. Both sides have set the aim to double bilateral trade by 2030, which was $23.15 billion in 2024-25 (Apr-Mar). India exported goods worth $14.55 billion in 2024-25 and imported $8.61 billion worth of goods in the year, according to data available with the commerce ministry. The UK is among India's top 10 export destinations. End

US$1 = INR 86.51

Reported by Krity Ambey

Edited by Vandana Hingorani

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