The long-pending Free Trade Agreement (FTA) between India and the United Kingdom (UK) is now set to be finalized. Prime Minister Narendra Modi and British Prime Minister Keir Starmer are scheduled to meet on Thursday. The signing ceremony of this historic agreement will take place at Chequers, the British Prime Minister's country house located in the Chiltern Hills of Buckinghamshire, about 2 hours from London.
Chequers is a historic 16th-century manor house, now used as the British Prime Minister's official country retreat. It is here that the delegations from both countries will finalize this important trade agreement.
Indian Delegation Includes Prominent Industrialists
Commerce Minister Piyush Goyal has already arrived in the UK ahead of this major event on behalf of India. He is accompanied by Special Secretary and Chief Negotiator L. Satya Srinivas, and Industry Secretary Amardeep Singh Bhatia.
In addition, the 16-member business delegation includes several prominent Indian industrialists, including Sunil Bharti Mittal, Chairman of Bharti Enterprises, Prashant Ruia, CEO of Essar Group, Anish Shah, MD of Mahindra Group, Ritesh Agarwal, Founder of OYO, and Chandrajit Banerjee, Director General of CII.
This delegation will meet with top corporate leaders in the UK and discuss further deepening trade partnerships between the two countries.
Global Business World Eyes PM Modi's UK Visit
Prime Minister Narendra Modi has stated regarding his UK visit that the strategic partnership between India and the UK has strengthened in recent years. The aim of this visit is to further enhance mutual cooperation in areas such as trade, investment, technology, defense, health, research, and education.
Another stop on the Prime Minister's trip will be the Maldives, but for now, all eyes are on this major trade agreement in London.
Piyush Goyal and Jonathan Reynolds to Sign the Deal
The formal signing process of this deal will be completed between Commerce Minister Piyush Goyal from India and Business and Trade Secretary Jonathan Reynolds from the UK. Following this, a B2B summit will be organized on Friday, where industrialists from both countries will discuss new opportunities and business prospects.
Major Benefit for Exports from India
Upon implementation of the FTA deal, tariffs on approximately 99 percent of exports from India to the UK will be eliminated. This will make it cheaper and easier for India to send its products to Britain. The textile, leather, and jewelry sectors, in particular, are expected to receive a tremendous boost from this deal.
FIEO President S.C. Ralhan says that this agreement will increase job opportunities in the labor-intensive sector and will also boost investment flow.
High Hopes for the Gems and Jewelry Sector
Kirit Bhansali, Chairman of the Gems and Jewellery Export Promotion Council (GJEPC), who is part of this delegation, says that exports of gems and jewelry from India could reach $7 billion next year. He believes that the demand for studded jewelry, in particular, is going to increase rapidly in the UK.
Under this agreement, India will be able to import gold, silver, and platinum from the UK, but there will be a fixed limit or cap on this.
UK Parliament Approval Pending, Formalities for Implementation in India
The Indian government has already approved this deal from the cabinet. Now, the process of implementing it is just a formality. In the UK, this agreement will have to be approved by Parliament, only after which it will become fully effective.
A New Chapter in India-UK Trade Relations
In terms of figures, the total trade between India and the UK in FY24 was more than $55 billion. The UK is the sixth largest investor in India, with a total investment of $36 billion to date. India has also invested more than $20 billion in the UK.
These trade relations are now set to deepen further, as agreements like the FTA are making India ber in the global market. Notably, India is also close to finalizing a similar trade deal with the United States.
Enthusiasm in the Business World, Global Significance to be Gained
There is considerable enthusiasm in business circles, both domestically and internationally, regarding the India-UK FTA. It is being seen not just as a trade agreement but as the beginning of a new era of strategic partnership. The governments and industries of both countries will now work together to explore new opportunities through it.
