As India and the UK inked the Free Trade Agreement (FTA), after two and a half years of intense negotiations on each aspect of the deal, British Prime Minister Keir Starmer hailed the trade pact as ‘the biggest and economically significant trade deal’ since the country exited the European Union (EU).
He underlined that the India-UK FTA will incentivise wage growth, improve living standards and put more money in the pockets of the working class.
Key Benefits
Addressing the press along with PM Modi in London on Thursday, Starmer stated that the FTA deal will benefit British workers in cutting-edge manufacturing, whiskey distillers across Scotland and the service sector in London, Manchester and Leeds as it will bring down the prices of Indian goods in the UK.
“It is a deal which will bring benefit to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working. It is good for jobs. FTA is good for business, cutting tariffs, making trade cheaper, quicker and easier. It is good for British workers in cutting-edge manufacturing, whiskey distillers across Scotland and the service sector in London, Manchester and Leeds. The FTA is good for consumers because it will bring down prices on Indian goods in the United Kingdom, like clothes, shoes and food, and it will deliver benefits for the long term,” he said.
“The pact will add about 4.8 billion pounds to the UK economy every year. And 2.2 billion pounds to wages and hundreds of millions of pounds to the regions and nations up and down the United Kingdom. We both know this is the biggest and most economically significant trade deal that the UK has made since leaving the EU, and I think I can say it is one of the most comprehensive deals that India has ever done. So, thank you, Prime Minister, for your leadership and for your pragmatism, and I would like to thank everybody who has worked so hard to get this deal over the line,” he added.
Deal Signed After 14 Rounds of Negotiations
After 14 rounds of deliberations, spanning over two and a half years, PM Modi and his British counterpart on Thursday signed the much-awaited Free Trade Agreement (FTA), which is likely to boost annual bilateral trade by about $35 billion.
As part of the landmark FTA, India will cut tariffs on 90 per cent of UK products, while the UK will reduce duties on 99 per cent of Indian exports, easing tariffs and regulatory burdens across sectors.
Keir Starmer further said, “As I have said before and as we were just discussing, we have entered a new global era and that is one that requires us to step up, not stand aside, to deliver for the British people by building deeper partnerships and alliances, and today is very much confirmation of that approach.”
He noted that the FTA with India signals a powerful message that “the UK is open for business, and that is already inspiring confidence among businesses.
“The UK has been negotiating a deal like this for many years, but it is this government that got it done, and we are sending a very powerful message that the UK is open for business and that is already generating huge confidence. Today, we are announcing nearly six billion pounds in investments and exports between India and the United Kingdom, creating 2200 jobs for British workers.”
India–UK Vision 2035 Strategy Launched
Starmer announced that the two nations are also launching the India-UK vision 2035 strategy, to work more closely in sectors such as defence, migration, climate change, education and health.
“As we have discussed this morning, this is not the extent of the limits of our collaboration with India. We have unique bonds of history, of family and of culture, and we want to strengthen our relationship further so that it is even more ambitious, modern and focused on the long-term. The step-up in the relationship we discussed in the autumn of last year, and that’s why alongside this trade deal, I am delighted that we are building on our partnership by launching India-UK Vision 2035 Strategy, pledging to work more closely on areas such as defence, migration, climate change, education and health,” he said.
“We will also build on the fantastic work we already do in technology and innovation. Celebrating the one-year anniversary of the landmark Technology Security Initiative. Making the most of the opportunities it represents for both of our countries,” he added.
Earlier, PM Modi called on Starmer at the Chequers Estate – the countryside retreat of the Prime Minister of the United Kingdom. As he began official engagements on his fourth visit to the country. PM Modi is on a two-day official visit to the UK at the invitation of his British counterpart.
Also Read: Today Is A Historic Day In Our Relations: PM Modi On India–UK Free Trade Agreement
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