New Delhi: Amid the Tariff War launched worldwide by US President Trump, India and Britain on Tuesday announced a long -stayed bilateral historic trade agreement, which will remove taxes on exports of leather, shoes and clothing products that require large amounts of labor, while British whiskey and cars will be cheaper in India. The agreement is expected to double bilateral trade between the two countries by 2030 to reach $ 120 billion. The conversation for FETI between the world’s fifth and sixth largest economies was going on for almost three years. The two countries have also signed the double contribution agreement.
Prime Minister Narendra Modi and British Prime Minister Kir Starmer spoke over the phone and described the completion of the FTA process as a historic milestone in bilateral trade strategic partnership. Along with this, an agreement called Double Contribution Convention has also been signed between the two countries. The free trade agreement between the two countries will facilitate business, investment will increase, employment will be created and new ideas will be encouraged.
The trade agreement between India and Britain aims to increase trade between the two countries by 25.5 billion pounds by 2040. The British government says that this agreement will increase Britain’s GDP by 4.8 billion pounds by 2040. The world is trapped in Trump’s tariff war and the clouds of war between India and Pakistan are starting to hover. At such a time, India has been successful in signing the trade agreement with Britain. This agreement is on three different issues. The first is FTA, the second is bilateral investment treaty, and the third is the Social Security Agreement, called the Dual Contribution Conference Agreement.
Under this agreement, India will open its market for British products including whiskey and automobiles. The two countries had a 14 round of talks for the FTA. Bilateral trade between India and Britain increased from $ 20.36 billion in FY 23 to $ 21.34 billion in FY2 24. The goal of the two countries is to double their bilateral goods trade in the next 10 years to the current $ 20 billion.
Under this trade agreement, tariffs on 99% of goods exported from India to Britain will be reduced to zero, while Indian professionals will be able to travel to Britain to work without changing Britain’s mark-based immigration system. Taxes on Indian textiles, jewelery and jewelery will be reduced. On the other hand, India will reduce the whiskey coming from Britain and the tariff from the current 150 percent to 75 percent and will reduce the tariff by 40 percent during the 10 years of the agreement. Apart from this, the existing 100 percent tariff under quota on automobile will be reduced to 10 percent.
This agreement will promote exports to Britain from India. The tariff on many items will be reduced or eliminated completely. Clothing and costumes, shoes, carpets, seafood, grapes and mangoes will be reduced fees. Minerals, chemicals, plastic, rubber, wood, paper, textiles, glass, porcelain, base metal, mechanical and electric machinery, weapons and ammunition, transportation and auto, furniture, sports goods and processed foods will be zero on Indian products. Apart from British Scotch Whiskey, exports of products like electric vehicles, chocolate and confectionery to India will also increase. Apart from this, Britain will increase in areas like pharmaceuticals, telecommunications, laws, financial services, banking and insurance.
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Ahmedabad: Free Trade Agreement (FTA) between India and Britain is the beginning of a new era of trade between the two countries. British Prime Minister Kir Starmer said, “We have entered a new era for business and economy.” The agreement means that Britain’s economy will be strong and grow rapidly. This is the biggest and most important agreement for Britain after exiting the European Union.
Prime Minister Narendra Modi invited Kir Starmer to come to India, which he accepted. He said that he is keen to come to India as soon as possible. Keer Starmer said that this is the biggest deal after Britain exiting the European Union. Along with this, Keer Starmar also expressed concern over the terrorist attack in Pahalgam and expressed his condolences. Prime Minister Narendra Modi wrote on the social media platform X, “It was a pleasure to talk to his friend Prime Minister Kir Starmer.” As a historical achievement, India and Britain have successfully performed an ambitious and mutually beneficial free trade agreement, including a double contribution agreement. This historic agreement will deepen the extensive strategic partnership between the two countries and promote trade, investment, development, employment, manufacturing and innovation in both economies. I am eager to welcome Prime Minister Starmer to India at the earliest.
