The United Kingdom and India signed the landmark Free Trade Agreement (FTA) on Thursday. British Prime Minister Keir Starmer and his Indian counterpart Narendra Modi were present when the agreement was formally signed.
The British secretary of state for business and trade Jonathan Reynolds and Indian minister of commerce, Piyush Goyal signed the agreement at Chequers, London on Thursday.
In the long run, the FTA will increase wages by £2.2 billion annually and strengthen the UK economy by £4.8 billion. It is anticipated that trade between the UK and India will increase by £25.5 billion a year.
Under the multi-billion-pound export boost, Indian textiles and jewellery will be cheaper to export to the UK, while UK automobiles and whisky will be cheaper to export to India.
In addition to committing to a new India-UK plan to tackle illegal migration, the trade deal took three years to reach.
According to Starmer, it is “The biggest and most economically significant” trade deal Britain has made since Brexit.
“The UK has been negotiating a deal like this for many years, but it is this government that got it done, and with it, we’re sending a very powerful message that Britain is open for business, and that is already generating huge confidence,” he added.
Some takeaways from the FTA
The British prime minister said that as Indian companies grow their operations in the UK and British companies find new commercial possibilities in India, the agreement will result in the creation of more than 2,200 British jobs nationwide.
While the UK would lower tariffs on goods like scotch whisky, gin, soft drinks, cosmetics, lamb, and other farm products, India will eliminate import duties on significant exports like leather, footwear, and apparel.
Some UK cars will only be permitted entry into India at 10 percent duty, a significant decrease from over 100 percent
Companies in Pune, Chennai, and Gurgaon will benefit from lower prices for Indian-made machinery, tools, and auto parts in the UK.
More Indian engineers, architects, and accountants will be able to work in the UK thanks to relaxing of visa regulations and recognition of qualifications.
Indian pharmaceutical companies will have easier access to the UK healthcare system and receive approvals more quickly, particularly for generic medications.
Farmers and exporters in Assam, Gujarat, Kerala, and Bengal will benefit from lower prices for basmati rice, shrimps, tea, and spices in the UK.
With a goal of doubling chemical exports by 2030, lower duties on chemicals and plastics will increase exports from Gujarat and Maharashtra.
By lowering costs and promoting green growth, the FTA will increase UK investment in solar, hydrogen, and electric vehicle projects in India.
King Charles meets Modi
Following the signing of the FTA between the UK and India, King Charles III met with Modi at Sandringham Estate in Norfolk.
Modi presented Charles a tree sapling to be planted in the autumn while he was in Sandringham. The Indian prime minister started an environmental campaign last year that urges people to honour their mothers by planting a tree.
Modi took to x and wrote, “This visit will go a long way in advancing the economic partnership between our nations. The focus will be on furthering prosperity, growth and boosting job creation for our people. A strong India-UK friendship is essential for global progress.”