India and uk conclude free Trade Agreement: India and Britain On Tuesday, a “historic” free trade agreement was completed, which would remove the duty on export of labor-intensive products such as leather, shoes and clothing, while the imports of whiskey and cars from Britain would become cheaper. The agreement is expected to double the trade between the two economies by 2030 to reach $ 120 billion. India, the fifth largest economy in the world, India and the sixth largest economy UK has completed this trade agreement after three years of talks. Once the FTA is implemented, 99 percent of Indian products in the UK market will not have any tariffs, while Indian workers will be allowed to travel without any changes in the UK’s immigration system.
No tax exemption on British dairy products and apples
Under FTA, Britain will not be given any relief in import duty on sensitive agricultural goods like dairy products, apples and cheese. An official gave this information on Tuesday. The official said that about 10 percent of the duty lines are in the list of sensitive goods. India and Britain on Tuesday announced the completion of talks on FTA.
Both countries will benefit.
In addition, taxes will be reduced on export of Indian textiles, frozen shrimp, jewelery and gems. Similarly, the import duty on whiskey coming from Britain and gin alcohol will also be reduced. Imports of vehicles under quota on both sides will cost 10 percent duty, which will benefit automobile companies like Tata-JLR.
Indian products entering the UK with zero charges include minerals, chemicals, gems and jewelery, plastic, rubber, wood, paper, textiles, glass, earthen pots, mechanical and electrical machinery, weapons and ammunition, transport vehicles, furniture, sports items, animal products and processed foods.
Prime Minister Narendra Modi announced the abolition of these agreements after talking to British Prime Minister Kir Starmer over the phone. Describing it as a ‘historic milestone’, Prime Minister Modi said, “India and Britain have successfully concluded an ambitious and mutually beneficial free trade agreement (FTA) with a double contribution agreement.” He said, “These historical agreements will further strengthen our widespread strategic partnership and promote trade, investment, development, employment generation and innovation in the economies of both countries.” British Prime Minister Starmar also described it as historic and said that this would improve the lives of people and businesses working in both countries.
Indian traders will get big benefit
The two countries have also completed negotiations on double contribution agreement including FTA. This will prevent Indian professionals working for a limited period in the UK from repeating double contribution to the Social Security Fund. The Ministry of Commerce said, “Under the Dual Contribution Agreement, Indian workers and their employers in the UK will be exempted from paying social security contribution in the UK for a period of three years, which will give significant economic benefits to Indian service providers.” However, negotiations on bilateral investment treaty (BIT) between India and Britain are still on. Initially, the plan was to complete the three contracts simultaneously.
The Ministry of Commerce described it as a historic agreement.
The Ministry of Commerce has stated that the FTA with Britain is a modern, comprehensive and historical agreement that aims to achieve intensive economic integration with trade liberalization and tariff concessions. The ministry said that India will benefit from the end of tariffs on about 99 percent of the product categories, which is about 100 percent of the trade price.
In the context of services, India will also benefit in areas such as information technology and related services, finance, commercial and educational services. The ministry said, “The UK will open immense opportunities for talented and skilled Indian youth, which is a leading global center for digital services due to its strong financial and professional service sectors and advanced digital infrastructure.”
