London [UK], July 24 : The much-awaited landmark India-UK Free Trade Agreement was signed on Thursday, in the presence of Prime Ministers Narendra Modi and Keir Starmer, providing greater access to goods and services between the two countries.
PM Modi is on a two-day visit to the UK.
"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," UK PM Starmer wrote on X ahead of the signing ceremony.
On May 6, Prime Minister Modi and his UK counterpart, Keir Starmer, announced the successful conclusion of a mutually beneficial India-UK Free Trade Agreement (FTA). This forward-looking Agreement is aligned with India's vision of Viksit Bharat 2047 and complements the growth aspirations of both countries.
The idea behind the trade deal is to eliminate or reduce tariffs on imports and exports between the two nations. This should make Indian products competitive in the UK and vice versa.
Both nations desire to increase their trade to USD 120 billion by 2030.
The FTA is expected to boost key sectors such as textiles, leather, footwear, sports goods and toys, marine products, gems and jewellery, engineering goods, auto parts and engines, and organic chemicals.
"The FTA ensures comprehensive market access for goods, across all sectors, covering all of India's export interests. India will gain from tariff elimination on about 99% of the tariff lines covering almost 100 per cent of the trade value offering huge opportunities for increase in the bilateral trade between India and the UK," India's Commerce and Industry Ministry had said in its release on May 6.
Today, the UK government said India's average tariff on UK products will drop from 15 per cent to 3 per cent under India-UK FTA.
The UK statement asserted that British companies selling products to India from soft drinks and cosmetics to cars and medical devices will find it easier to sell to the Indian market.
Further, British whisky producers will benefit from tariffs slashed in half, reduced immediately from 150 per cent to 75 per cent and then dropped even further to 40 per cent over the next ten years - giving the UK an advantage over international competitors in reaching the Indian market, the UK statement noted.
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