India, UK forge Free Trade Agreement; PM Modi terms it ‘historic milestone’ – Times of India-OxBig News Network

NEW DELHI: In a significant boost to bilateral relations, India and the United Kingdom have successfully concluded a Free Trade Agreement (FTA) and a Double Contribution Convention, marking a significant milestone in their strategic partnership.The announcement was made by Prime Minister Narendra Modi following a conversation with his British counterpart, Prime Minister Keir Starmer. “Delighted to speak with my friend PM Keir Starmer. In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention,” he in a post on X. Calling the FTA “ambitious and mutually beneficial,” PM Modi further said that that the deal is set to deepen the Comprehensive Strategic Partnership between the two nations and spur growth across multiple sectors. “These landmark agreements will further catalyse trade, investment, growth, job creation, and innovation in both our economies.”He further hinted at a possibility of Starmer visiting India saying, “I look forward to welcoming PM Starmer to India soon.”Further giving details on the Free Trade Agreement, the PMO issued a press release stating that the expansion of economic and commercial relationships between India and the UK stands as a remain a cornerstone of the increasingly robust and multifaceted partnership, as acknowledged by both leaders. A well-balanced and comprehensive Free Trade Agreement, encompassing both goods and services, is anticipated to boost bilateral trade substantially, create employment opportunities, elevate living standards and enhance the quality of life for people in both nations. This trade agreement strengthens the core of the India-UK Comprehensive Strategic Partnership, establishing a framework for enhanced cooperation and economic growth, according to the statement.Free Trade Agreements generally aim to reduce or remove customs duties across various traded products whilst facilitating services trade and investment regulations. India seeks enhanced opportunities for its qualified professionals in the UK’s IT and healthcare sectors, alongside duty-free entry for various products.The UK, in turn, reportedly requested reduced tariffs for its exports, including “scotch whisky, electric vehicles, lamb meat, chocolates, and confectionery”. Additionally, they aim to increase their presence in India’s services sector, particularly in “telecommunications, legal, financial services, banking, and insurance”.The Global Trade Research Initiative (GTRI) suggested that Indian products, including textiles, apparel, footwear, carpets, marine goods, grapes, and mangoes, would benefit from this agreement due to the UK’s relatively modest tariffs on these items.