On Tuesday, India and the United Kingdom signed a long-awaited historic Free Trade Agreement (FTA). This milestone was reached amidst the backdrop of tariff warnings from former US President Donald Trump, as both nations engaged in negotiations. The announcement followed a telephone conversation between Prime Minister Narendra Modi and UK Prime Minister Keir Starmer.
Prime Minister Modi described the agreement as a 'historic milestone', noting that it will deepen the comprehensive strategic partnership between India and the UK. The deal is set to foster trade, boost investment, drive economic growth, create jobs, and encourage innovation.
Tariffs Reduced on Key Products
Under the agreement, tariffs will be reduced on several items including whisky, advanced manufacturing parts, and food products like lamb meat, salmon, chocolate, and biscuits. Additionally, both countries have agreed on a quota system for automobile imports.
Strengthening Economic Relations
In an official statement, Prime Ministers Modi and Starmer welcomed the successful conclusion of the India-UK FTA and the Double Contribution Convention. The leaders stated that these historic agreements between two of the world's major open-market economies will unlock new trade opportunities, strengthen economic ties, and deepen people-to-people connections.
Building a Secure Economy
The statement highlighted Prime Minister Starmer's commitment to enhancing cooperation with global economies and reducing trade barriers as part of his 'Plan for Change', aimed at building a strong and secure economy.
Both leaders agreed that the economic and trade relations between India and the UK will remain the cornerstone of this robust and multifaceted partnership. The FTA will create new opportunities for both countries to develop products and services for global markets collaboratively.
