London, July 24: The India-UK free trade agreement (FTA) will significantly improve market access and will boost bilateral trade by around USD 34 billion annually, the British government said on Thursday, hours before formalising the landmark deal.
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.
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.
The UK said Indian consumers will benefit from improved access to the best British products — from soft drinks and cosmetics to cars and medical devices — as average tariffs will 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.
The UK said the ambitious new vision for 2035 will go beyond trade, with reinvigorated mutual commitment to drive prosperity and innovate and deepen defence cooperation through a new Defence Industrial roadmap.
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.
It is both India’s most comprehensive deal ever, and the UK’s most economically significant bilateral trade deal since leaving the EU, the UK said.
“It significantly improves market access for businesses in both countries, leading to cheaper products and services for consumers,” it said.
PM Modi landed in London on Wednesday as part of his two-nation trip to the UK and the Maldives. (PTI)
