India-UK sign free trade agreement, 99 per cent of Indian exports to benefit

LONDON: India and Britain signed a free trade agreement (FTA) on Thursday. The agreement was signed by Union Commerce Minister Piyush Goyal and British Secretary of State for Business and Trade, Jonathan Reynolds, in the presence of Prime Minister Narendra Modi and British Prime Minister Keir Starmer. The agreement was signed after bilateral talks between Modi and Starmer. Starmer called the FTA a historic agreement that will boost job creation and business opportunities in the UK.

The agreement will eliminate tariffs on 99 per cent of Indian goods imported into the UK, including textiles, footwear, auto parts, gems and jewellery, furniture, sporting goods, chemicals and machinery. Currently, these have tariffs ranging from four to 16 per cent. 90 per cent of British goods imported into India will be duty-free. Bilateral trade will double from the current US$60 billion by 2030.

Import duties on Scotch whisky and gin will be reduced from 150 per cent to 75 per cent. This will be reduced to 40 per cent within 10 years. Tariffs on British luxury cars such as Aston Martin and Jaguar Land Rover will be reduced from 100 per cent to 10 per cent. Tariffs on UK products, including cosmetics, salmon, chocolates, biscuits and medical devices, will also be reduced.

The bilateral talks between PM Modi and Keir Starmer will also focus on cooperation in trade, defence, climate, innovation, education, artificial intelligence and semiconductor technologies. PM Modi will meet King Charles III and then travel to the Maldives tomorrow.