India and UK have signed the much awaited Free Trade Agreement (FTA)with Prime Minister Narendra Modi on Tuesday terming it as a ‘historic milestone” and said it will deepen bilateral ties. The pact will catalyse trade, investment, growth and job creation in both the economies, he said.
Prime Minister Modi also announced that India and UK also firmed up Double Contribution Convention pact. These landmark agreements will further deepen our comprehensive strategic ties, Modi said. A statement from the Prime Minister’s Office(PMO)said “Prime Minister Narendra Modi and Prime Minister of the United Kingdom Keir Starmer had a telephone conversation on Tuesday. The two leaders welcomed the successful conclusion of an ambitious and mutually beneficial India-UK Free Trade Agreement along with the Double Contribution Convention.
The Leaders described it a historic milestone in the bilateral Comprehensive Strategic Partnership that would foster trade, investment, innovation and job creation in both the economies. Both agreed that the landmark agreements between the two big and open market economies of the world will open new opportunities for businesses, strengthen economic linkages and deepen people-to-people ties.
Prime Minister Starmer said strengthening alliances and reducing trade barriers with economies around the world is part of their Plan for Change to deliver a stronger and more secure economy.
The two leaders agreed that expanding economic and commercial ties between India and the UK remain a cornerstone of the increasingly robust and multifaceted partnership. The conclusion of a balanced, equitable and ambitious FTA, covering trade in goods and services, is expected to significantly enhance bilateral trade, generate new avenues for employment, raise living standards and improve the overall well-being of citizens in both countries. It will also unlock new potential for the two nations to jointly develop products and services for global markets.
This agreement cements the strong foundations of the India-UK Comprehensive Strategic Partnership, and paves the way for a new era of collaboration and prosperity. Prime Minister Modi invited Prime Minister Starmer to visit India. The leaders agreed to remain in touch.” India finalised the FTA with the UK, its 16th so far as the country aimed at boosting bilateral trade and investments.
The other regions and countries with which India has signed such agreements include the four-nation European bloc EFTA, Japan, Korea and Australia.
Since 2014, the country has signed five such agreements with Mauritius, the UAE, Australia, EFTA and the UK. Together, these trade pacts ensure preferential relationships with over 90 countries.
A free trade agreement is an arrangement between two or more countries where they agree either to end or reduce customs duties on the maximum number of goods traded between them, besides cutting down non-trade barriers on a significant value of imports from partner countries and easing norms to promote services exports and bilateral investments.
The subjects covered under these pacts range between 10 to 30. Across the globe, over 350 FTAs are currently in force and most of the nations have signed one or more such agreements.
Highlights of the FTA