New Delhi: In a significant stride for global trade relations, India and the United Kingdom have signed a landmark Free Trade Agreement (FTA), marking a new era of economic cooperation between the two nations. The deal, described as “historic” by both leaders, is expected to boost the British economy by £4.8 billion annually by the year 2040.
The FTA includes tariff reductions or eliminations on 90% of trade lines, encompassing a wide range of goods and services. The agreement promises to strengthen investment, trade flows, employment generation, and long-term strategic partnership between India and the UK.
British Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi reportedly held a “very warm” telephone conversation to finalize the agreement. “We have reached a historic agreement with India today that will boost the economy and benefit British citizens and businesses,” Starmer said in an official statement.
Prime Minister Modi echoed the sentiment, stating, “This historic agreement will further strengthen our economic ties, drive growth, promote investment, and create job opportunities in both countries.”
The India-UK FTA, years in the making and marked by several rounds of intense negotiations, aims to unlock new markets for Indian exports while providing British businesses access to India’s vast and growing consumer base. It covers sectors including textiles, technology, pharmaceuticals, renewable energy, and financial services.
The deal is also seen as a post-Brexit strategic win for the UK, as it seeks to establish new bilateral trade partnerships outside the European Union. For India, this agreement adds to its growing portfolio of global trade alliances, aligning with its broader strategy to position itself as a key player in the global economy.
As the agreement is set to come into effect after ratification from both governments, industry bodies in both countries have expressed optimism. Indian exporters anticipate lower tariffs and wider access to UK markets, while British businesses expect simplified procedures and new collaborative ventures with Indian firms.
Analysts say the FTA could be a blueprint for future agreements involving emerging economies and developed nations, striking a balance between mutual growth and strategic cooperation.
With the formalities now set in motion, the India-UK Free Trade Agreement stands as a powerful testament to diplomacy, economic ambition, and the shared vision of two major global players.
