The free trade agreement between the world's fifth- and sixth-largest economies has officially come into effect. It envisages a gradual reduction or elimination of tariffs on a broad range of goods, aiming to boost bilateral trade and improve market access for businesses on both sides.
Among the first product categories affected are textiles, agricultural goods and selected consumer items. For example, British shoppers could soon find Indian textiles at lower prices, while Indian households may gain easier access to Scotch whisky and other British specialty products.
Analysts note that the full implementation of the agreement will take several years. In the interim, joint working groups are tasked with detailing the tariff cuts and addressing non-tariff barriers.
The agreement also covers services and investment. Financial services, IT services and the education sector are highlighted as potential growth areas. Both governments stress that the deal complies with World Trade Organization rules and includes transparent procedures.
Critics, however, warn of possible downsides for sensitive sectors such as agriculture. They call for accompanying measures to shield farmers from increased competition. The administrations have pledged to protect sensitive areas through carve-outs.