Prime Minister Narendra Modi hailed the India-UK Free Trade Agreement (FTA) as a momentous occasion, marking a significant advancement in the bilateral relationship. During a joint press conference with UK Prime Minister Keir Starmer, PM Modi emphasized the enhanced market access and economic benefits for both countries. He also expressed his gratitude for the warm hospitality he received during his official visit.
“Today marks a historic day in our bilateral relationship,” PM Modi stated, acknowledging the culmination of the Comprehensive Economic and Trade Agreement. The FTA, signed in the presence of both leaders, will allow for improved access to goods and services. PM Modi sees the agreement as a pathway to shared prosperity.
Indian industries like textiles, footwear, gems and jewellery, seafood, engineering goods, agriculture, and processed foods are set to gain better access to the UK market. The UK will see its products, including medical devices and aerospace components, become more affordable in India. The core of the trade deal is to remove or reduce tariffs, making each country’s goods more competitive in the other’s market. The trade target is USD 120 billion by 2030.
The FTA is expected to fuel growth in sectors like textiles, leather, footwear, sports goods, toys, marine products, gems and jewellery, engineering goods, auto parts, engines, and organic chemicals. The agreement covers all of India’s export interests. India will benefit from minimal tariffs on almost all trade, creating large opportunities for more trade with the UK.
The UK government noted that the average tariff on UK products entering India will fall dramatically. The FTA is designed to make it easier for British companies to sell their products to India, from beverages to medical technology. British whisky producers will see a sharp decline in tariffs, offering them a market advantage.