India and the UK have successfully concluded a Free Trade Agreement (FTA), the first major pact between the two nations after US President Donald Trump's policy on tariffs threatened to upend global commerce.
Welcoming the FTA, Prime Minister Narendra Modi in a post on X, tagging his British counterpart Keir Starmer, said that the two nations have also agreed upon a Double Contribution Convention.
Calling it a historic milestone, Modi said that the FTA between the two nations will be ‘mutually beneficial’. He also invited his British counterpart Starmer to visit India soon.
Starmer said that strengthening alliances and reducing trade barriers with economies around the world is part of their Plan for Change to deliver a stronger and more secure economy, according to an official statement by the Indian government following the post on X.
The two leaders agreed that expanding economic and commercial ties between India and the UK remain a cornerstone of the increasingly robust and multifaceted partnership, the statement added.
"The conclusion of a balanced, equitable and ambitious FTA, covering trade in goods and services, is expected to significantly enhance bilateral trade, generate new avenues for employment, raise living standards, and improve the overall well-being of citizens in both countries. It will also unlock new potential for the two nations to jointly develop products and services for global markets," according to the statement.
The trade agreement between India and the UK has secured significant tariff cuts on scotch whisky and car exports to India, offering a boost to two key UK industries hit hard by Trump’s tariffs.
Aided by lower tariffs, labour-intensive Indian exports such as textiles and footwear are set to benefit from lower British duties through the FTA.
The UK began free trade talks with India in January 2022, viewing the deal as one of Brexit’s most valuable opportunities. However, multiple Conservative-led governments have failed to finalise the agreement despite efforts to secure it swiftly.
The FTA, which has 26 chapters including goods, services, investments, and intellectual property rights was originally slated to be signed during Diwali 2022,
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