After three long years of intense negotiations and heightened anticipation in recent days during Indian Commerce and Industry Minister Piyush Goyal’s visit to London, the much-anticipated UK-India Free Trade Agreement (FTA) finally hit the finish line.
Indian Prime Minister Narendra Modi spoke to his UK counterpart, Keir Starmer, as both leaders hailed the “ambitious and mutually beneficial” trade deal along with a Double Contribution Convention – which will ensure that professionals on either side are exempt from double National Insurance contributions in both countries for the first three years.
“These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies,” said PM Modi, who invited Starmer to India – a visit which would see the formal signing of the pact.
According to the UK’s Department for Business and Trade (DBT), the deal is expected to increase bilateral trade by at least £25.5 billion annually over the years – a significant boost from the current £41 billion figure.
Lord Karan Bilimoria, Chair of the International Chamber of Commerce (ICC) UK, said: “I believe that this Free Trade Agreement will be a catalyst and turbo charge trade, business and investment between the United Kingdom and India and that our bilateral trade will double to over 80 billions pounds within five years.
“The UK and India are the best of friends and have the best of potential. Onwards and upwards!"
UK Business and Trade Secretary Jonathan Reynolds said: “By striking a new trade deal with the fastest-growing economy in the world, we are delivering billions for the UK economy and wages every year and unlocking growth in every corner of the country, from advanced manufacturing in the North East to whisky distilleries in Scotland.
“In times of global uncertainty, a pragmatic approach to global trade that provides businesses and consumers with stability is more important than ever.”
Piyush Goyal, who had led intense talks last week to get the deal over the line, noted: “This forward-looking agreement benefits our farmers, fishermen, MSMEs, startups, exporters and aligns with India's vision of Viksit Bharat 2047.
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“It also supports the shared growth ambitions of both our nations.”
With around 1.9 million people of Indian heritage based in the UK, DBT said the FTA is set to strengthen the vital partnership between both democracies. The benefits for UK businesses and consumers under this deal are massive, with wins across an array of sectors, it said.
The Indian government said the agreement is a “win-win” in that it will now offer Indian consumers quality goods at competitive prices, boosting domestic consumption and growth while offering UK businesses access to India’s enormous demand-driven, and emerging market, supporting the UK’s growth agenda as well.
The FTA will now become the focal point of the annual India Global Forum London Summit, to be held between June 16 and 20 themed around ‘Forging Winning Partnerships’.
*Info: India Global Forum