India-UK Free Trade Agreement: A partnership for development

A Free Trade Agreement between India and the UK creates a major opportunity to strengthen the economic partnerships between international leaders. This partnership helps grow trade and investment while encouraging innovation. It also strengthens cooperation between sectors and supports shared economic growth.

Implementing the Economic Growth

Delivering economic growth that improves living standards and puts money in people's pockets is the government's main goal, and this agreement will accomplish just that. In the long run, we predict that it will enhance wages by £2.2 billion annually, contribute £4.8 billion to our economy, and increase bilateral commerce by £25.5 billion. This is the best bargain India has ever agreed to. It fulfills our pledge in the manifesto to establish commercial linkages that open new markets for companies in all our countries and areas.

According to Standard Chartered's CEO for the UK and Head of Coverage for the UK, Saif Malik, "the UK-India Free Trade Agreement is a noteworthy accomplishment. It would boost growth and innovation throughout the UK-India corridor, open new opportunities for Indian and UK companies, and provide easier access to one of the biggest and most vibrant marketplaces in the world. We applaud this resolute dedication to collaboration and success."

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Cutting Costs for UK-India Trade

Businesses in the United Kingdom will benefit from this agreement right away since it will make doing business with India quicker, easier, and less expensive. The agreement will lower the price of UK exports, such as lamb, cosmetics, medical equipment, whiskies and gin, and sophisticated machinery. India's tariff savings, based only on current commerce, total £400 million in the first year and increase to over £900 million after ten years. Not to mention the cost savings from quicker and simpler trade due to better customs and digital commitments. Our companies will have a significant competitive edge over their foreign rivals thanks to this instant relief, which will enable them to invest, grow, and create more good employment.

The British government said that no changes to immigration laws, particularly those pertaining to Indian students studying in the UK, were included in the "landmark" deal, which took three years to reach.

According to Prime Minister Sir Keir Starmer, "the agreement would deliver for British people and business and strengthen the economy."

Narendra Modi, the prime minister of India, called the deal "ambitious and mutually beneficial and a historic milestone."

He claimed that the agreement would "catalyse trade, investment, growth, job creation, and innovation in both our economies" in a post on the social media site X.

The India-UK Free Trade Agreement represents a landmark advancement in worldwide trade operations. It will create economic prosperity and new employment opportunities with increased bi-lateral commerce. The historical agreement receives its strength from mutual gains and institutional support which enhances relationship development while driving innovation and securing business success across both countries.