New Delhi: India and the United Kingdom have concluded a “historic” and “ambitious” Free Trade Agreement (FTA), as well as a double contribution conference, that is, an agreement to temporarily exemption Indian workers in Britain with social security contribution.
Announced on Tuesday, the FTA signed the first bilateral trade agreement between India and a western country. Three years after the conversation began in 2022, the deal came.
“Glad to talk with my friend PM @Keir_starmerIn a historic milestone, India and Britain have successfully concluded with an ambitious and mutually beneficial free trade agreement with a double contribution conference, “Prime Minister Narendra Modi said in an X post.” These landmark agreements will deepen our broad strategic partnership, and catalyze business, investment, development, job building and innovation in our economies. I soon look forward to welcoming PM in India. ,
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“The leaders started celebrating the landmark UK-India Free Trade Agreement today announced today-a UK prime minister Kir Stmper said in a statement-a deal that will add billions to the UK economy, promote wages and distribute to change the government’s plan.”
The original time limit of the deal was October 2022, as declared by the then British Prime Minister Boris Johnson. By the end of 2022, more than three-fourths of the deal was agreed. However, many challenges, including the difference in the situation on basic measures such as services, construction of specific items and legal dynamics, remain, remain, remain, remain, Reported earlier.
The deal could not be closed earlier, there were Indian tariffs on automobiles and alcohol, as well as political challenges before the previous orthodox government. After a stagnation in 2024 due to general elections in the two countries, the conversation for the FTA again began again earlier this year.
Trade between the two countries was around $ 60 billion, it is estimated to double in the next five years. For the stormer, the deal is a foreign policy victory, given that the Labor Party she leads, she faces an electoral setback in the local elections held in the UK last week.
For India, it completes the first of the three trade deals that are currently interacting with Western countries. Other deals under the conversation are with the US and the European Union (EU). India signed a trade deal with the European Free Trade Association (EFTA) last year, but the FTA is the first bilateral trade deal. Four countries are in Switzerland, Iceland, Liechtenstein and Norway, EFTA.
FTA Highlights
The FTA will ensure “wider market access to goods in all areas”, covering all exports in India, stated in the statement of the Ministry of Commerce and Industry. India will look at the elimination of tariffs on about 99 percent tariff lines, which will cover about 100 percent of its total trade value with the UK.
It offers India access to the UK in the “sector” seafar, seafood, leather, shoes, sports goods and toys, gems and jewelery and other important areas such as engineering goods, auto parts and engines and organic chemicals “in the sector.
The agreement will reduce dynamics for many professionals, including contractual service suppliers, commercial visitor, investors, intra-corporate transfers, partners and intra-corporate transfers dependent children, work rights and independent professionals, such as musicians, yoga trainers and cooks.
Indian workers will be allowed to “temporarily in UK” and Indian employers will be exempted from contributing towards social security for three years at the double contribution conference. This conference will save about 20 percent for Indian employees, which will be a financial benefit of Rs 4,000 crore for Indian employers, when temporarily in Britain.
For London, 90 percent of tariff lines in the deal will show New Delhi locking in the cut, with 85 percent tariff-free within the next decade. In addition, whiskey and Jin tariffs will be reduced from 150 percent to 75 percent before the 10th year of the deal reduced by 40 percent, the British Hightiy said in a statement.
In addition, automobiles will be cut from 100 percent to 10 percent with a quota on British automobile imports. The deal will also show tariff cuts for British manufacturers in aerospace and high-end optical product areas, while lamb, salmon, medical devices, soft drinks, chocolate and biscuits will also give more access to Indian markets.
Sensitive products like dairy, apples and cheese among other products will be exempted from duty concessions.
India has also agreed to other chapters, including anti -corruption, consumer security, labor rights, gender and development.
(Edited by Madhurita Goswami)