London: India and the UK on Thursday signed a landmark free trade agreement (FTA) which aims to double bilateral trade and boost Indian exports of goods like textiles, leather, and engineering goods, while slashing tariffs on British whisky, automobiles, and medical devices.
The agreement was signed by Union Minister Piyush Goyal and his British counterpart Jonathan Reynolds, in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer.
“Today is a historic day in India-UK relations… After many years of hard work, a comprehensive economic and trade agreement has been inked between India and the UK,” PM Modi said after the signing.
Stating that it is the “biggest and economically most significant trade deal the UK has made since leaving EU,” Starmer remarked, “With the signing of the FTA with India, we are sending a very powerful message that Britain is open for business.”
External Affairs Minister S Jaishankar, UK Chancellor Rishi Sunak were also present at the signing. The agreement was signed at Chequers, the official residence of the British prime minister, which is located 50 km northwest of London.
“The FTA is expected to benefit 99 per cent of Indian exports from tariffs and will make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket,” PTI reported citing Indian officials
The trade deal is expected to ensure comprehensive market access for Indian goods across all sectors and India will gain from tariff elimination on about 99 per cent of tariff lines (product categories) covering almost 100 per cent of the trade values, the officials said.
After signing the landmark deal, the two prime ministers are also expected to unveil an “UK-India Vision 2035” to take their partnership to new heights in a time of rapid global change.
The UK said Indian consumers will benefit from improved access to the best British products — from soft drinks and cosmetics to cars and medical devices — as average tariffs will drop from 15 per cent to 3 per cent after the FTA kicks in.
The UK already imports 11 billion pounds in goods from India, but liberalised tariffs on Indian goods will make it easier and cheaper for British consumers and businesses to buy Indian products and boost Indian businesses’ exports to the UK, it said in a statement.
“Our landmark trade deal with India is a major win for Britain,” Starmer said.
