The UK media is ablaze with praise for the blockbuster India-UK Free Trade Agreement (FTA), a post-Brexit triumph that’s set to turbocharge trade by USD 34 billion annually and unlock India’s booming market—poised to rival China’s by 2050. Signed by Commerce Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds, with Prime Ministers Narendra Modi and Keir Starmer beaming at Chequers, this “landmark” deal is being hailed as a Brexit-fueled victory for British jobs and exports. But beneath the celebratory headlines, some warn of a hidden catch that could stir controversy.

Officially named the Comprehensive Economic and Trade Agreement (CETA), the pact slashes Indian tariffs on British goods from 15% to 3%, with ministers projecting a £5 billion GDP boost by 2040. The Daily Express crowed, “Remainers are choking on their cornflakes—this Brexit deal proves the UK’s global clout!” Meanwhile, The Times called it “worth the effort,” noting India’s rise as the world’s fifth-largest economy in 2022, overtaking Britain itself. The deal, made possible by the UK’s exit from the EU, marks a sharp contrast to the EU’s decades-long struggle to secure a similar agreement with India.

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The FTA’s promise of deeper ties and a potential USD 120 billion trade surge by 2030 has sparked jubilation. Images of Modi and Starmer sharing warm hugs and tea at the British PM’s countryside retreat dominated UK front pages, with outlets reveling in the “mood music” of renewed Anglo-Indian bonds. Yet, not everyone’s cheering. The Financial Times highlighted grumbles from British carmakers, who found the deal “watered-down” after tough negotiations. Tariffs on UK petrol and diesel cars won’t hit the promised 10% until 2031, with strict caps on sales in India until 2046. Still, the sector remains cautiously optimistic as tariffs trend downward.

A bigger storm is brewing over the Double Contributions Convention (DCC), a side agreement raising eyebrows. It allows Indian workers in the UK, employed by India-based firms, to skip National Insurance payments for up to three years while contributing to Indian social security—and vice versa for UK workers in India. The Daily Telegraph flagged concerns that this could undercut British workers, especially after Labour’s recent National Insurance hikes and pressure to tighten immigration amid Reform UK’s rise. The Times warned of a “dark lining,” hinting that the influx of India’s skilled talent, as praised by Modi, might inflate UK migration stats—a sensitive issue.

Despite the naysayers, the FTA’s potential is undeniable. With India’s market growing rapidly, the deal positions the UK to tap into a powerhouse economy. Awaiting ratification in the UK Parliament over the next year, this agreement could reshape global trade dynamics. Will it cement Britain’s post-Brexit prowess, or will the immigration debate steal the spotlight? One thing’s clear: this deal is a game-changer worth watching.

Also Read: India-UK Trade Deal Ushers in New Economic Era