The India-UK Free Trade Agreement (FTA) has been signed by Prime Minister Narendra Modi and his British counterpart Keir Starmer, marking a significant milestone in the trade and economic ties between the two nations. The agreement is expected to boost annual bilateral trade by $34 billion and create thousands of jobs in the UK. Tata Steel CEO & MD T.V. Narendran has welcomed the signing of the FTA, calling it a “landmark achievement” that will deepen the economic and strategic partnership between India and the UK.
Under the agreement, India will cut tariffs on 90% of UK products, while the UK will reduce duties on 99% of Indian exports. This will make imported goods like Scotch whisky, gin, luxury cars, cosmetics, and medical devices more affordable for Indian consumers. Indian farm products will also gain tariff parity with major European exporters like Germany. The FTA is expected to boost India’s competitiveness in the textile and leather sectors, with zero duties on these products.
The agreement is also expected to benefit India’s electronics and engineering exports, which are likely to double by 2030. Gems and jewellery exports are also expected to double in the next three years. The UK’s exports to India are expected to increase by almost 60% over the long term. The FTA will also give a boost to India’s manufacturing ambitions, according to Narendran.
Prime Minister Modi’s visit to the UK is significant, as it marks his fourth visit to the country. He is set to hold wide-ranging discussions with Starmer on the entire gamut of India-UK bilateral relations, including trade and economy, technology and innovation, defence and security, climate, health, education, and people-to-people ties. The two sides will also review the progress of the Comprehensive Strategic Partnership (CSP) between the two nations.
The signing of the FTA is a major win for Britain, according to Starmer, and will create new opportunities for businesses and drive growth in every corner of the country. The agreement is a significant step forward in the economic and strategic partnership between India and the UK, and is expected to have a positive impact on trade and investment between the two nations.