India-UK Free Trade Pact Signed, PM Modi Says New Market For Indian Farmers
India and the UK signed the Free Trade Agreement, likely to double bilateral trade by 2030. Commerce Minister Piyush Goyal and British Trade Minister Jonathan Reynolds inked the pact in the presence of PM Narendra Modi and UK PM Keir Starmer
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India and United Kingdom Finalize Free Trade Agreement in London
New Delhi:
The Free Trade Agreement between India and the UK was officially signed today in London, with projections to double bilateral trade by 2030. The historic agreement was signed by Commerce Minister Piyush Goyal and British Trade Minister Jonathan Reynolds, with Prime Ministers Narendra Modi and Keir Starmer witnessing the ceremony.
Key points about the agreement
The Comprehensive Economic and Trade Agreement is anticipated to benefit Indian farmers significantly. Agricultural and processed food products from India will now have duty-free access to UK markets.
Under the new agreement, British markets will become more accessible to Indian farm products, providing Indian farmers with advantages superior to those enjoyed by European exporters.
Indian agricultural products including turmeric, pepper and cardamom, along with processed foods such as mango pulp, pickles, and pulses, will enter British markets without duties. This expansion of market access is expected to substantially increase profit margins for Indian farmers.
While UK imports will gain duty-free access to India's extensive market, the government has implemented protective measures for sensitive agricultural sectors. No tariff concessions will be granted for dairy products, apples, oats, or edible oils, thereby protecting domestic agricultural interests.
India's fisheries sector will also reap significant benefits, particularly in coastal states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu. Seafood exports including shrimp, tuna, fishmeal, and feeds, which previously faced UK duties between 4.2 and 8.5 percent, will now enter Britain duty-free.
The agreement facilitates easier export of labor-intensive products such as leather, footwear and clothing, while reducing costs for UK imports including whiskey and automobiles. Other imported goods like medical devices will become more affordable in India.
Following the signing ceremony, PM Modi highlighted that the agreement will reduce "cost of doing business" and enhance "confidence of doing business," noting that cooperation between these major economies would strengthen global stability and prosperity.
During the event, Prime Minister Modi acknowledged UK's support after the Pahalgam terror attack and expressed gratitude to PM Starmer for standing with India against terrorism. He also conveyed condolences for the UK nationals who perished in last month's Ahmedabad plane crash.
Prime Minister Starmer characterized the trade agreement as "historic," stating that "Both countries will see a boost in wages and living standards." He specifically mentioned that the deal would benefit Scotland's whiskey distillers and reduce prices of Indian clothes, shoes, and foods for British consumers.
After concluding his London visit, Prime Minister Modi will travel to the Maldives at President Mohamed Muizzu's invitation, a visit considered a diplomatic breakthrough after relations between the nations had deteriorated during Muizzu's tenure.