London: The British media on Friday lauded the India-UK Free Trade Agreement, saying it opens the door to a market that could be second only to China's by 2050.
The India-UK Free Trade Agreement (FTA) or the Comprehensive Economic and Trade Agreement (CETA) seeks to enhance bilateral trade by around USD 34 billion annually, besides ensuring better market access.
The pact was inked by Commerce Minister Piyush Goyal and his UK counterpart Jonathan Reynolds in the presence of Prime Ministers Narendra Modi and his British counterpart Keir Starmer, whose government pegged it as a landmark deal, which secured thousands of British jobs and export wins.
Many British media outlets have chosen to frame it as a key post-Brexit win, made possible only because the UK is no longer a member of the European Union (EU) - an economic bloc that has had many stops and starts with negotiating an FTA with India over decades.
All major UK publications had images of the beaming prime ministers and their trade ministers emblazoned alongside largely exuberant headlines resonating the central theme around the mood music of warm hugs and cups of tea shared between Modi and Starmer at Chequers, the countryside residence of the British PM.
"Britain's bumper trade deal with India will have Remainers choking on their cornflakes this morning. Not only was it made possible by leaving the EU, it shows that Brexit is well and truly working," notes a 'Daily Express' article entitled 'One reason why multi-billion-pound Brexit trade deal with India is good for Britain'.
'The Times' analysis concludes that Britain's trade deal with India is "worth the effort" because it "opens the door to a market that could be second only to China's by 2050." Harking back to Anglo-Indian trade of pre-independence times, when Mahatma Gandhi took to spinning Khadi to boycott foreign-made cloth, the newspaper highlights how the tables turned as India overtook Britain to become the world's fifth-largest economy in 2022.
"On average, Indian tariffs on British goods will be reduced from 15 per cent to 3 per cent. Ministers forecast the deal will boost GDP by GBP 5 billion by 2040. That may be small beer given UK national output of GBP 2.56 trillion, but it does not take account the deepening ties illustrated by the agreement and the potential for ever greater trade liberalisation," it notes.
'The Financial Times', meanwhile, largely optimistic in its coverage of PM Modi's visit to the UK, which revolved almost entirely around the FTA or CETA as it is christened, did flag the automotive sector's muted reaction to the tariff cuts agreed.
"British carmakers have been left underwhelmed by the UK-India trade deal signed on Thursday, with industry figures saying 'very difficult' last-minute talks between London and New Delhi had resulted in a watered-down accord," the newspaper states.
The concern is around UK petrol and diesel car tariffs not falling to a headline 10 per cent rate until 2031 and a tight cap on the number of cars they can sell in the Indian market tapering "markedly" between 2031 and 2046.
"Carmakers were still relatively optimistic about the deal, given that tariff rates are set to come down," it adds.
The one aspect of the deal that has some sections of the media striking a note of concern is the Double Contributions Convention (DCC), which will be enforced along with the FTA.
"The deal means Indian workers employed by an India-based employer will be able to work in the UK for up to three years without paying National Insurance. They will continue to pay into Indian social security during that period, with reciprocal rules in place for UK workers who go to India," notes 'The Daily Telegraph'.
"The deal comes a matter of months after Labour imposed higher National Insurance on British companies and follows calls from within Labour for the party to toughen its immigration stance amid the rise of Reform UK," it states.
The newspaper goes on to quote Prime Minister Modi's statement on how the DCC will "inject new energy into the service sectors of both countries" and the UK economy will "benefit from India's skilled talent", implying an unwelcome impact on migration statistics.
"There is, of course, a dark lining to every silver cloud, and in the case of the Anglo-Indian deal, it is the fear that an arrangement exempting Indians working temporarily in this country from paying national insurance could result in British workers being undercut. One to watch," concludes 'The Times' analysis.
The FTA targets a doubling of bilateral trade to USD 120 billion by 2030. Following Indian Cabinet approval and the formal signing, the deal progresses to its UK Parliament ratification process, which is expected to take up to a year.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
