New Delhi/London: India and UK on Thursday signed the landmark Free Trade Agreement (FTA) after three years of hectic parleys, bringing in the promise of a major boost to the economies of both countries.
The Agreement was signed in London by Union Minister Piyush Goyal and his British counterpart Jonathan Reynolds in the presence of Prime Minister Narendra Modi, currently on a two-day visit to UK, and British Prime Minister Keir Starmer.
Prime Minister Modi described the Agreement as a ‘’plan for shared prosperity.’’
‘’The Agreement is not just an economic agreement but also the plan for a shared prosperity. New opportunities will emerge in the UK market for India's agricultural produce and processed food industry. This agreement will especially benefit Indian youth, farmers, fishermen and MSME sector. For people in India products made in UK will be available at reasonable and affordable prices," the Prime Minister said.
The UK PM described the Agreement as a ‘’big win for Britain’’. ‘’India deal is a big win for Britain that will improve people’s lives,’’ Mr Starmer said on X.
‘’A landmark deal with India means jobs, investment and growth here in the UK. It creates thousands of British jobs, unlocks new opportunities for businesses and puts money in the pockets of working people. That’s our Plan for Change in action,’’ he said.
The agreement, okayed by the Union Cabinet early this week, includes lower tariffs on cars, clothing and footwear and jewellery and will involve reduced levies on British exports to India including on gin and whiskey, cosmetics and cars. The lower tariffs will make Indian exports cheaper and Indian manufacturers will gain access to the UK market for electric and hybrid vehicles.
Foreign Secretary Vikram Misri said both countries had finalised the Agreement on May 6.
Commerce Minister Piyush Goyal described the FTA as a ‘’big win’’ for farmers, ensuring duty-free exports on nearly 95 per cent of agricultural products.
Duty-free access for about 99 per cent of Indian exports unlocks nearly 23 billion Dollars in opportunities for labour-intensive sectors, he said adding that artisans, weavers and daily-wage labourers employed in MSMEs would usher in a new phase of prosperity.
He said the FTA is a big leap for women through improved access to finance and deeper integration into global value chains and will provide Indian consumers high quality goods at competitive prices.
