UK and India Finalize Historic Free Trade Agreement: PM Keir Starmer Hails ‘Fantastic Deal’
In a landmark development, British Prime Minister Keir Starmer has lauded the newly concluded Free Trade Agreement (FTA) between the United Kingdom and India as a “fantastic deal,” marking a significant milestone in the bilateral relations of the two nations.
The agreement, finalized after years of negotiations, aims to enhance trade and economic cooperation, boost innovation and job creation, and promote mobility between the UK and India. Both leaders described it as a historic milestone in the bilateral Comprehensive Strategic Partnership.
Under the terms of the FTA, the UK will see significant reductions in tariffs on exports such as Scotch whisky, cosmetics, and automobiles. Notably, India, the world’s largest market for whisky, is expected to become a major destination for UK whisky exports. Conversely, 99% of Indian exports, including food, spices, and textiles, will become free from import duties in the UK.
Prime Minister Starmer emphasized the importance of strengthening alliances and reducing trade barriers with economies around the world as part of the UK’s “Plan for Change” to deliver a stronger and more secure economy. He stated, “Today Britain has agreed a landmark trade deal with India. Fantastic news for British business, British workers, and British shoppers.”
The FTA is projected to boost bilateral trade by £25.5 billion ($34 billion) annually by 2040, adding nearly £5 billion to the UK economy each year. The agreement is also expected to unlock new potential for the two nations to jointly develop products and services for global markets.
In addition to trade, the two leaders agreed to deepen cooperation in a wide range of areas, including defence and security, critical and emerging technology, and climate change. Prime Minister Modi invited Prime Minister Starmer to visit India, an invitation that Starmer was pleased to accept.
The conclusion of the India-UK FTA marks a new era of collaboration and prosperity, cementing the strong foundations of the India-UK Comprehensive Strategic Partnership and paving the way for enhanced economic and cultural ties between the two nations.
Key Facets of the Deal are per enclosure;