The India-United Kingdom free trade agreement is expected to significantly improve market access and boost bilateral trade by around USD 34 billion(Rs 2.84 lakh crore) annually, according to the British government. PM Narendra Modi and Keir Starmer is scheduled to sign this landmark deal in a few hours today.
The two prime ministers will also unveil an "UK-India Vision 2035" to take their partnership to new heights in a time of rapid global change that will go beyond trade and deepen defence cooperation through a new Defence Industrial roadmap.
PM Modi landed in London on Wednesday as part of his two-nation trip to the UK and the Maldives.
Why Is India-UK FTA Important?
The FTA, billed as the UK's most economically significant bilateral trade deal since leaving the European Union, will be signed in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.
According to the UK, Indian consumers will benefit from improved access to the best British products that includes soft drinks and cosmetics to cars and medical devices.
Not to forget that average tariffs are expected to drop from 15 per cent to 3 per cent after the FTA kicks in.
The UK already imports 11 billion pounds in goods from India but liberalised tariffs on Indian goods will make it easier and cheaper for British consumers and businesses to buy Indian products and boost Indian businesses' exports to the UK, it said in a statement.
"Our landmark trade deal with India is a major win for Britain," Starmer said.
"It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change," he said.
It will provide for securing "our borders, tackle climate change and nurture educational connections."
On the FTA, the UK said it is forecast to boost bilateral trade by 25.5 billion pounds (USD 34 billion) yearly.
The UK asserted that it is both India's most comprehensive deal ever, and the UK's most economically significant bilateral trade deal since leaving the EU. "It significantly improves market access for businesses in both countries, leading to cheaper products and services for consumers," it said.
