Keir Starmer, the Prime Minister of United Kingdom (UK) on July 24 called the India-UK free trade agreement (FTA) the biggest trade deal since the country left the European Union (EU), underscoring the scale of partnership between both nations.
"This is the biggest and the most economically significant trade deal that the UK has made since leaving the EU and I think I could say that it is one of the most comprehensive deals that India has ever done," Starmer said during the joint press conference with Prime Minister Modi, after signing the landmark FTA.
Both PMs signed the FTA at Chequers, the official country residence of British prime minister, located 50 km northwest of London.
The FTA will pave the way for both the nations to unlock billions in trade and investment opportunities. According to the British government, the trade deal will significantly improve market access and will boost bilateral trade by around $34 billion annually.
The two Prime Ministers also launched 'Vision 2035' for partnerships in defence, education, technology and people to people relations, among others. It will include artificial intelligence, critical minerals, semiconductors, cybersecurity, among a host of other sectors.
Read More: FTA: India to lower average tariff on British goods to 3% from 15%
The deal will increase UK’s exports to India by nearly 60 percent in the long run, equivalent to an additional £15.7 billion when applied to projections of future trade in 2040. Bilateral trade between India and the UK is expected to increase nearly 39 percent in the long run to £25.5 billion a year, when compared to 2040 projected levels in the absence of an agreement, the British government said. Read More
India will eliminate tariffs on aerospace goods from as high as 11 percent, while duties on electrical machinery will be either lowered or eliminated from up to 22 percent, the British government added.
“The UK already imports £11 billion in goods from India, but liberalised tariffs on Indian goods will make it easier and cheaper to buy their best products. For businesses, this could mean potential savings when importing components and materials used in areas such as advanced manufacturing or luxury and consumer goods,” the British government said in a statement.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
