The FTA between India and the UK was signed during PM Modi's London visit. This will boost trade and make many foreign products like cars, cosmetics, and devices cheaper.
PM Modi Visit: Prime Minister Narendra Modi has arrived in London for a historic visit to the United Kingdom. The primary objective of this visit is to sign the long-awaited Free Trade Agreement (FTA) between India and Britain. Prime Minister Modi will be in London for the next 24 hours, where he held bilateral discussions with British Prime Minister Keir Starmer. This agreement between the two countries is being hailed as historic, opening doors to new opportunities in trade, investment, and technological cooperation.
Potential for £25.5 Billion in Trade
Following this agreement, annual bilateral trade between India and the UK is estimated to increase by approximately £25.5 billion. This is Britain's second-largest trade agreement after Brexit. This deal will strengthen the economies of both countries and give a new dimension to their partnership on the global stage.
Many Products Will Be Cheaper for Consumers
Consumers will directly benefit after the FTA is implemented. Products imported from the UK, such as beverages, cosmetics, luxury cars, and medical equipment, will now become cheaper in India. According to sources, the tariff on these could decrease from an average of 15 percent to 3 percent. This will make high-quality foreign products available to the general public at lower prices.
Indian Exporters Will Get a Big Market
This agreement could also prove to be a boon for Indian industries. The UK currently imports about £11 billion from India, but after the reduction in tariff rates, India's exports are likely to increase even faster. This deal will particularly benefit the textile, pharmaceuticals, automobile, and IT sectors. Indian companies will have easier access to the UK market, giving them a competitive edge.
UK Businesses Will Also Benefit
This agreement is highly beneficial not only for India but also for the UK. According to the British High Commission, about 26 UK companies have announced new investments and business expansion in India. Major companies like Airbus and Rolls-Royce will begin supplying aircraft to major Indian airlines. More than half of these aircraft will be equipped with Rolls-Royce engines. In addition, UK companies in the clean energy sector will have better access to the Indian market.
Launch of the India-UK 2035 Vision
During this visit, both countries jointly launched the India-UK 2035 Vision document. This vision will work towards strengthening cooperation in areas beyond trade, such as defense, education, climate change, and innovation. This vision lays the foundation for taking India-UK relations to new heights in a rapidly changing global landscape.
Discussions on Technical and Security Cooperation
During the first anniversary of the India-UK Technology Security Initiative, serious discussions were also held between the two leaders on technical cooperation. The aim of this initiative is to work together in the areas of cyber security, artificial intelligence, and advanced technologies. The plan is to further strengthen national security through this.
British Prime Minister's Reaction
British Prime Minister Keir Starmer described this agreement as historic. He said that it would create thousands of new job opportunities across the UK and accelerate development in every corner of the country. According to him, this agreement with India is a concrete step towards turning the UK's transformation plan into reality. He also said that this India-UK partnership will not only be limited to trade but will also deepen cultural and social cooperation.
