UK-India FTA
On Thursday, India and the UK signed a landmark Free Trade Agreement (FTA). This deal is poised to boost bilateral trade by USD 34 billion annually.
According to a statement released earlier by the British High Commission, the UK-India trade agreement is expected to boost bilateral trade by PS25.5 billion annually.
This deal will provide major market access for Indian farmers in the UK.
Starmer Says "Landmark Deal"
In a tweet, Starmer called the FTA a "landmark deal" and said the agreement will boost employment and business opportunities in the UK. "A landmark deal with India means jobs, investment and growth here in the UK. It creates thousands of British jobs, unlocks new opportunities for businesses and puts money in the pockets of working people. That's our Plan for Change in action," he wrote on X.
Reducing Tariffs On British Products
The proposed agreement aims to reduce average tariffs on British products such as cars, medical devices, cosmetics, and soft drinks from 15 per cent to 3 per cent--benefiting Indian consumers.
He added that the deal was part of his "Plan for Change" to help families with the cost of living and provide citizens with money.
Modi-Starmer Bilateral Talks
The deal was signed between Commerce Minister Piyush Goyal and the UK's Secretary of State for Business and Trade Jonathan Reynolds. Bilateral talks between PM Modi and his British counterpart Keir Starmer in London led to the signing of the agreement.
Market Access & Low Tariffs
The deal is expected to unlock thousands of jobs, lower tariffs, and increase market access for businesses in both countries.
India is already the UK's 12th largest trading partner, with bilateral trade standing at over PS 36 billion. The proposed agreement aims to reduce average tariffs on British products such as cars, medical devices, cosmetics, and soft drinks from 15 per cent to 3 per cent--benefiting Indian consumers.
UK-India Vision 2035
During PM Modi's visit, both leaders are also expected to unveil the UK-India Vision 2035, a renewed Comprehensive Strategic Partnership that outlines a broader roadmap for collaboration in areas such as defence, technology, climate, education, and national security.
India: An Emerging Economic Superpower
At the same time, it will ease market entry for Indian exporters, further increasing the UK's current imports of PS11 billion worth of Indian goods.UK Business and Trade Secretary Jonathan Reynolds described India as "an emerging economic superpower of the 21st century," adding that the trade pact marks a new phase in bilateral relations.
The deal also builds on the UK-India Technology Security Initiative signed last year. Both sides have reaffirmed their commitment to harnessing frontier technologies and deepening cooperation on national security and border protection.
